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Te tāke painga tāpiri mō ngā kamupene tata Fringe benefit tax for close companies

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Fringe benefit tax and income tax return filing

If you’re a close company (5 or less people hold more than 50% of the voting interests or market value interests of the company) you can file an income year fringe benefit tax (FBT) return and income tax return at the same time if:

  • your gross PAYE and employer superannuation contribution tax (ESCT) for the previous year were $1,000,000 or less
  • the only fringe benefit you provided was up to two motor vehicles for private use by shareholder-employees, or
  • you were not an employer in the previous year.

Motor vehicles

Close companies can opt out of the FBT rules for motor vehicles if they:

  • have only 1 or 2 motor vehicles available for private use by their shareholder-employees, and
  • do not provide any other fringe benefits.

If you choose not to use the FBT rules you'll have to:

  • elect to opt out of the FBT rules
  • apply the rules for vehicle expenditure in your income tax return, and
  • use the rules for determining motor vehicle expenditure to make an adjustment for private use.
GST guide IR375 (PDF 697KB) Download form