Fringe Benefits Tax (New Zealand)
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Fringe Benefits Tax (FBT) within the system of taxation in New Zealand is the tax applied to most, although not all, fringe benefits ("perks"), including the ones provided through someone other than an employer. FBT is paid to the Inland Revenue Department by the employer and is calculated with reference to the value of the benefit provided to the employee or associate. Legistation governing the imposition of FBT is contained within section C of the Income Tax Act 2004.
The categories of benefits include motor vehicles, low-interest loans, free, subsidised or discounted goods and services, employer contributions to funds, insurance and superannuation schemes and other benefits.
As of 2006, there are three methods of rate calculation for FBT: flat rate (64%), multi-rate and short form multi-rate options. FBT filing may be quarterly, finance year, or annual tax returns.
