FBT (Fringe Benefit Tax)

Most benefits given to employees (or shareholder employees) other than their salary or wages are "fringe benefits".

There are four main groups of taxable fringe benefits:

  • motor vehicles available for private use
  • free, subsidised or discounted goods and services
  • low-interest loans
  • employer contributions to sickness, accident or death benefit funds, superannuation schemes (excluding Kiwisaver at the standard 3%) and specified insurance policies.

If these benefits are enjoyed or received by employees as a result of their employment, the benefits are liable for FBT. The employer pays the tax on the benefit provided to the employee (including shareholder employees). FBT returns are filed either quarterly or annually depending on the election made. The most common FBT queries that we receive tend to be in relation to Motor Vehicles

If you have any further questions in relation to FBT in general or how to calculate FBT please contact us.