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Fringe benefit tax (FBT): Fringe benefit tax overview
If, as an employer you provide fringe benefits (perks) to your employees, shareholder-employees, or other people associated with your business, generally you must pay fringe benefit tax on the value of these benefits.
What is FBT?
|FBT is ...||Benefits include ...|
|a tax on benefits that employees receive and enjoy as a result of their employment.||
- Employees may be past, as well as present or future employees. For example, your liability continues if your employer status changes, but you continue providing a fringe benefit (for example, a low-interest loan) to a former employee.
- Liable benefits include benefits that someone gives to employees or shareholder-employees on behalf of the employer.
Tax exemptions for employees
The following exemptions are available on free, subsidised, or discounted goods and services.
|For ...||the exemption is ...||or the maximum exemption is ...|
|quarterly filers||$300 per employee per quarter||$22,500 per annum for all employees.|
|annual and income year filers||$1,200 per employee per annum||$22,500 per annum for all employees.|
What are my responsibilities?
If you are liable for FBT, you must file regular FBT returns. These may be:
- for each quarter
- for the income year, or
If you choose an alternative filing option, eg from quarterly to annual or income year, you can:
- complete the online FBT election, or
- phone us on 0800 377 772.
For any type of FBT return, where fringe benefit tax is not paid by the due date, late payment penalties will be charged.
When do my responsibilities not apply?
As an employer, you are not liable for filing an FBT return if you:
- do not provide fringe benefits, and
- do not intend to provide them.
What are my responsibilities when my employer status changes?
When your employer status changes, you must file FBT returns until you stop providing fringe benefits.
|If you stop employing ...||and ...||then you must ...|
|also stop providing fringe benefits||
|or discontinue your business but still provide benefits to past employees or shareholder-employees||
For more help
Please call us on 0800 377 772.