FBT

Fringe benefit tax overview

Fringe benefit tax (FBT) is a tax on benefits that employees receive as a result of their employment, including those benefits provided through someone other than an employer.

What is a fringe benefit?

Fringe benefits (perks) include most benefits given to employees in addition to their salary or wages.

Fringe benefit tax

As an employer, if you provide fringe benefits (perks) to your employees, or other people associated with your business, you must generally pay FBT on the value of these benefits.

Non-attributed benefits

Non-attributed benefits are pooled or shared fringe benefits that are not attributed to an individual employee.

FBT glossary

Glossary terms relevant to fringe benefit tax

Attributed benefits

An attributed benefit is a fringe benefit of which an employee has the principal use or enjoyment during the quarter or year. For many categories of fringe benefits, a threshold value exists, meaning that benefits over this value must be attributed.

Attributed income

The attribution rule and how it applies for FBT purposes.

Refer to the IRD website, or contact us, for more infomation on how fringe benfit tax is applied and calculated on.