Fringe benefit tax is a tax on benefits that employees receive as
a result of their employment, including those benefits provided
through someone other than an employer.
The four main groups of fringe benefits
are:
-
employer contributions to sick,
accident or death benefit funds, superannuation schemes and
specified insurance policies
-
low-interest loans other than
low-interest loans provided by life insurance companies
-
motor vehicles
-
free, subsidised or discounted goods
and services, including subsidised transport for employers in
the public transport business
Gifts, prizes and other goods are fringe benefits. If you pay for
your employees' entertainment or private telecommunications use,
these benefits may also be liable for fringe benefit tax
Refer to the
IRD website (or
contact us) for more information on how fringe benefit tax is
applied and calculated.
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