Inland Revenue is currently working through changes to the FBT system. The stated intentions are to reduce complexity and better targets benefits received in substitution of remuneration. It is expected that the changes to FBT will be included in this year's tax legislation and take effect from 1st April, 2025. We will continue to monitor the situation and provide updates as necessary.
FBT Category
Keeping up with Fringe Benefit Tax
As an employer, if you provide fringe benefits to employees, or others associated with your business, you must generally pay fringe benefit tax (FBT) on the value of these benefits. So, when are you liable for FBT? Any time you provide non-cash benefits to your staff. The list is potentially endless but in practice, most non-cash benefits fall into one of these categories: motor vehicles subsidised transport staff vouchers/gifts offsite carparks insurance premiums Of these, most FBT revolves around company vehicles, so let’s look at what Inland Revenue expect from you if you provide vehicles for any of your staff:…
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