The taxable value of a low interest loan is the difference between the actual interest on the loan and what the interest would be if this was calculated at the prescribed rate or the market rate. Market rate may only be used by banks and financial institutions that have elected to use that rate.
Gather your information
You will need the:
- employee’s name
- actual interest rate % charged
- actual interest
- loan balance.
To keep track of the FBT on multiple loans you can also add details such as the relevant quarter and the year the loan was granted.
Enter the information into a calculator
You can calculate :the taxable value of the loan using myIR.
Or use one of the calculators. You'll need to select low-interest loans from the drop down and copy those details into your return..
Use this calculator to work out FBT on all benefits provided when you file annual FBT returns.Go to this tool
Use this calculator to work out FBT on all benefits provided when you file quarterly FBT returns.Go to this tool
Use this calculator to work out FBT on all benefits provided when you file income year FBT returns.Go to this tool