{"id":1148,"date":"2020-12-11T03:51:07","date_gmt":"2020-12-11T03:51:07","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1148"},"modified":"2021-03-23T10:55:11","modified_gmt":"2021-03-22T21:55:11","slug":"what-is-fbt-in-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/","title":{"rendered":"What Is Fringe Benefit Tax (FBT) in New Zealand?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">Work-life balance has become a priority for most employees. With this shift, benefits and perks are now a great tactic to attract and retain top talent. When you provide special perks to your employees, like gym memberships or work vehicles for personal use, you may be liable for Fringe Benefit Tax (FBT). FBT can be expensive for your business, and you are required to make payments to Inland Revenue (IRD) either quarterly, annually or on an income basis. Therefore, to avoid late payment penalties and interest, it is essential to understand:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">which benefits are subject to FBT in New Zealand;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how to choose a filing frequency; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how much you need to pay.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">This article will explain your <a href=\"https:\/\/legalvision.co.nz\/corporations\/income-tax\/\">tax obligations<\/a> as an employer under New Zealand law.\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">What i<\/span>s<span style=\"font-weight: 400\"> F<\/span>ringe Tax Benefit<span style=\"font-weight: 400\">?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Fringe benefits include most benefits and perks that you give to your employees, their family or related person* other than their salary or wages. In New Zealand, there are four fringe benefits categories:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.nz\/employment\/vehicle-use-policy\/\">motor vehicles<\/a> provided by the business for the employee&#8217;s private use;<\/span><\/li><li><span style=\"font-weight: 400\">any goods or services that you provide to your employees for free, subsidised or discounted;<\/span><\/li><li><span style=\"font-weight: 400\">low interest loans except for life insurance; and\u00a0<\/span><\/li><li><span style=\"font-weight: 400\">any contributions from the business towards the employee&#8217;s sickness, accident or death benefit funds, superannuation schemes and insurance policies.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">When your employees receive fringe benefits as a result of their employment, these benefits are liable for t<\/span>ax<span style=\"font-weight: 400\">. As an employer, you have to:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">pay tax on the benefits that you give to your employees or shareholder-employees;&nbsp;<\/span><\/li><li><span style=\"font-weight: 400\">file <\/span>your<span style=\"font-weight: 400\"> return either quarterly or annually; and&nbsp;<\/span><\/li><li><span style=\"font-weight: 400\">pay FBT.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Some entertainment expenses may be subject to t<\/span>ax<span style=\"font-weight: 400\"> if your employees enjoy or receive them. You can find out more details on this topic on the <\/span><a href=\"https:\/\/www.ird.govt.nz\/income-tax\/income-tax-for-businesses-and-organisations\/types-of-business-expenses\/entertainment-expenses\"><span style=\"font-weight: 400\">Inland Revenue website<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Some benefits are not subject to t<\/span>ax<span style=\"font-weight: 400\"> but, typically, you must deduct some other form of tax such as <a href=\"https:\/\/legalvision.co.nz\/corporations\/withholding-tax\/\">PAYE<\/a>. This excludes instances in which you are reimbursing your employee\u2019s expenses. These exceptions include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">cash benefits such as bonuses; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">cash allowances (or non-cash benefits provided in place of the allowance) such as tools to carry out work.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<div class=\"box box--warning box--icon\">\n<p><span style=\"font-weight: 400\">The association rules are complicated, so you should seek professional advice if you are not sure.<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Registering for FBT<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You need to register for FBT before you give your employees a fringe benefit. You can do this online when you register as an employer with IRD or by completing the Employer registration form (IR334).<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">You will also need to let IRD know if your circumstances change, such as when you:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">start providing fringe benefits;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">stop providing fringe benefits but continue to employ staff;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">stop employing staff and providing fringe benefits; or<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">deregister a charity.<\/span><\/li><\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar gform;gform||(document.addEventListener(\"gform_main_scripts_loaded\",function(){gform.scriptsLoaded=!0}),document.addEventListener(\"gform\/theme\/scripts_loaded\",function(){gform.themeScriptsLoaded=!0}),window.addEventListener(\"DOMContentLoaded\",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,themeScriptsLoaded:!1,isFormEditor:()=>\"function\"==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(\"The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 3.1.\"),o(),0))},initializeOnLoaded:function(o){gform.callIfLoaded(o)||(document.addEventListener(\"gform_main_scripts_loaded\",()=>{gform.scriptsLoaded=!0,gform.callIfLoaded(o)}),document.addEventListener(\"gform\/theme\/scripts_loaded\",()=>{gform.themeScriptsLoaded=!0,gform.callIfLoaded(o)}),window.addEventListener(\"DOMContentLoaded\",()=>{gform.domLoaded=!0,gform.callIfLoaded(o)}))},hooks:{action:{},filter:{}},addAction:function(o,r,e,t){gform.addHook(\"action\",o,r,e,t)},addFilter:function(o,r,e,t){gform.addHook(\"filter\",o,r,e,t)},doAction:function(o){gform.doHook(\"action\",o,arguments)},applyFilters:function(o){return gform.doHook(\"filter\",o,arguments)},removeAction:function(o,r){gform.removeHook(\"action\",o,r)},removeFilter:function(o,r,e){gform.removeHook(\"filter\",o,r,e)},addHook:function(o,r,e,t,n){null==gform.hooks[o][r]&&(gform.hooks[o][r]=[]);var d=gform.hooks[o][r];null==n&&(n=r+\"_\"+d.length),gform.hooks[o][r].push({tag:n,callable:e,priority:t=null==t?10:t})},doHook:function(r,o,e){var t;if(e=Array.prototype.slice.call(e,1),null!=gform.hooks[r][o]&&((o=gform.hooks[r][o]).sort(function(o,r){return o.priority-r.priority}),o.forEach(function(o){\"function\"!=typeof(t=o.callable)&&(t=window[t]),\"action\"==r?t.apply(null,e):e[0]=t.apply(null,e)})),\"filter\"==r)return e[0]},removeHook:function(o,r,t,n){var e;null!=gform.hooks[o][r]&&(e=(e=gform.hooks[o][r]).filter(function(o,r,e){return!!(null!=n&&n!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][r]=e)}});\n<\/script>\n\n                <div class='gf_browser_gecko gform_wrapper gravity-theme gform-theme--no-framework lawyer-form_wrapper gplaceholder_wrapper form-with-labels-no-asterisks_wrapper has-new-validation-error-styling_wrapper' data-form-theme='gravity-theme' data-form-index='0' id='gform_wrapper_2452' style='display:none'><div id='gf_2452' class='gform_anchor' tabindex='-1'><\/div><form method='post' enctype='multipart\/form-data' target='gform_ajax_frame_2452' id='gform_2452' class='lawyer-form gplaceholder form-with-labels-no-asterisks has-new-validation-error-styling' action='\/api\/wp\/v2\/posts\/1148#gf_2452' data-formid='2452' novalidate>\n                        <div class='gform-body gform_body'><div id='gform_fields_2452' class='gform_fields top_label form_sublabel_below description_below validation_below'><div id=\"field_2452_15\" class=\"gfield gfield--type-honeypot gform_validation_container field_sublabel_below gfield--has-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_15'>URL<\/label><div class='ginput_container'><input name='input_15' id='input_2452_15' type='text' value='' autocomplete='new-password'\/><\/div><div class='gfield_description' id='gfield_description_2452_15'>This field is for validation purposes and should be left unchanged.<\/div><\/div><div id=\"field_2452_1\" class=\"gfield gfield--type-text gfield--input-type-text gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_1'>First Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_1' id='input_2452_1' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_12\" class=\"gfield gfield--type-text gfield--input-type-text gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_12'>Last Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_12' id='input_2452_12' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_2\" class=\"gfield gfield--type-email gfield--input-type-email gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_2'>Email Address<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_email'>\n                            <input name='input_2' id='input_2452_2' type='email' value='' class='medium'    aria-required=\"true\" aria-invalid=\"false\"  \/>\n                        <\/div><\/div><div id=\"field_2452_3\" class=\"gfield gfield--type-phone gfield--input-type-phone gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_3'>Phone<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_phone'><input name='input_3' id='input_2452_3' type='tel' value='' class='medium'   aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_14\" class=\"gfield gfield--type-select gfield--input-type-select gfield--width-full custom-select gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_14'>Number of Employees in Your Business<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_select'><select name='input_14' id='input_2452_14' class='large gfield_select'    aria-required=\"true\" aria-invalid=\"false\" ><option value='' ><\/option><option value='0' >0<\/option><option value='1' >1-5<\/option><option value='6' >6-20<\/option><option value='21' >21-50<\/option><option value='51' >51-250<\/option><option value='250' >250+<\/option><\/select><\/div><\/div><div id=\"field_2452_4\" class=\"gfield gfield--type-textarea gfield--input-type-textarea gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_4'>Tell us about your enquiry<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_textarea'><textarea name='input_4' id='input_2452_4' class='textarea medium'     aria-required=\"true\" aria-invalid=\"false\"   rows='10' cols='50'><\/textarea><\/div><\/div><div id=\"field_2452_5\" class=\"gfield gfield--type-html gfield--input-type-html gfield_html gfield_html_formatted gfield_no_follows_desc field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  >By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. View our <a href=\"https:\/\/legalvision.co.nz\/privacy-policy\/\" target=\"_blank\">Privacy Policy<\/a>. <\/div><div id=\"field_2452_8\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_8' id='input_2452_8' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='http:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/1148' \/><\/div><\/div><div id=\"field_2452_13\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_13' id='input_2452_13' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='generic_form' \/><\/div><\/div><\/div><\/div>\n        <div class='gform-footer gform_footer top_label'> <button type=\"submit\" id=\"gform_submit_button_2452\" class=\"gform_button button\" onclick=\"gform.submission.handleButtonClick(this);\" data-submission-type=\"submit\"><span class=\"gform_submit_button__text\">Submit Now<\/span><\/button> <input type='hidden' name='gform_ajax' value='form_id=2452&amp;title=&amp;description=&amp;tabindex=0&amp;theme=gravity-theme&amp;hash=8d907caff460821c366ed2411b0c45b3' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submission_method' data-js='gform_submission_method_2452' value='iframe' \/>\n            <input type='hidden' class='gform_hidden' name='gform_theme' data-js='gform_theme_2452' id='gform_theme_2452' value='gravity-theme' \/>\n            <input type='hidden' class='gform_hidden' name='gform_style_settings' data-js='gform_style_settings_2452' id='gform_style_settings_2452' value='' \/>\n            <input type='hidden' class='gform_hidden' name='is_submit_2452' value='1' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submit' value='2452' \/>\n            \n            <input type='hidden' class='gform_hidden' name='gform_currency' data-currency='AUD' value='Dj5NKeFpRxUfz3m8F38PU4sgE7ct+WJO4PHQPRXJeKh9nwSX54OgdfdUIKfyunSEe5ze\/1VrA7wYpppxzzy3IBj+C8+Qmo+cn\/FQgdUvHwP5PGs=' \/>\n            <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' \/>\n            <input type='hidden' class='gform_hidden' name='state_2452' value='WyJ7XCIxNFwiOltcIjIyODY0N2ViMWU3NTcxZjA4YTY4NGJmMDcwMTk3Y2I0XCIsXCJiMzk3YmQ1MDBmMmFjNjk1ODE4MzdmNTBhYTA2MzQ0OFwiLFwiNGYyNGZkZGEwMzlkNDUxMWFhZGE1NGYwZmQwZmNiZTdcIixcIjUyMmJkMDE2M2I2ZmEwOTI3NDZhZjU5YTg0ZmM1NDk5XCIsXCIzODRlNjk1YjQxMTAzMWFiYmQ2ODEyMGYyZWFhMDYyNlwiLFwiYjkzNDcwNTE2MjkxOGRjZWViMjQzNzRjNmE0NGVmNTlcIixcIjQxMTliODZhMzVjYzJiMWViNDZiMmQ4NjRlNGUzZmNjXCJdfSIsIjQ3MjNiMzA2ZDIyZGVkODA2N2YyMjYyOThkYzI1ODVmIl0=' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_target_page_number_2452' id='gform_target_page_number_2452' value='0' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_source_page_number_2452' id='gform_source_page_number_2452' value='1' \/>\n            <input type='hidden' name='gform_field_values' value='' \/>\n            \n        <\/div>\n                        <\/form>\n                        <\/div>\n\t\t                <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_2452' id='gform_ajax_frame_2452' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'><\/iframe>\n\t\t                <script>\ngform.initializeOnLoaded( function() {gformInitSpinner( 2452, 'https:\/\/legalvision.co.nz\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery('#gform_ajax_frame_2452').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_2452');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_2452').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){form_content.find('form').css('opacity', 0);jQuery('#gform_wrapper_2452').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_2452').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_2452').removeClass('gform_validation_error');}setTimeout( function() { \/* delay the scroll by 50 milliseconds to fix a bug in chrome *\/ jQuery(document).scrollTop(jQuery('#gform_wrapper_2452').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_2452').val();gformInitSpinner( 2452, 'https:\/\/legalvision.co.nz\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery(document).trigger('gform_page_loaded', [2452, current_page]);window['gf_submitting_2452'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}jQuery('#gform_wrapper_2452').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_2452').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [2452]);window['gf_submitting_2452'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_2452').text());}else{jQuery('#gform_2452').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger(\"gform_pre_post_render\", [{ formId: \"2452\", currentPage: \"current_page\", abort: function() { this.preventDefault(); } }]);        if (event && event.defaultPrevented) {                return;        }        const gformWrapperDiv = document.getElementById( \"gform_wrapper_2452\" );        if ( gformWrapperDiv ) {            const visibilitySpan = document.createElement( \"span\" );            visibilitySpan.id = \"gform_visibility_test_2452\";            gformWrapperDiv.insertAdjacentElement( \"afterend\", visibilitySpan );        }        const visibilityTestDiv = document.getElementById( \"gform_visibility_test_2452\" );        let postRenderFired = false;        function triggerPostRender() {            if ( postRenderFired ) {                return;            }            postRenderFired = true;            gform.core.triggerPostRenderEvents( 2452, current_page );            if ( visibilityTestDiv ) {                visibilityTestDiv.parentNode.removeChild( visibilityTestDiv );            }        }        function debounce( func, wait, immediate ) {            var timeout;            return function() {                var context = this, args = arguments;                var later = function() {                    timeout = null;                    if ( !immediate ) func.apply( context, args );                };                var callNow = immediate && !timeout;                clearTimeout( timeout );                timeout = setTimeout( later, wait );                if ( callNow ) func.apply( context, args );            };        }        const debouncedTriggerPostRender = debounce( function() {            triggerPostRender();        }, 200 );        if ( visibilityTestDiv && visibilityTestDiv.offsetParent === null ) {            const observer = new MutationObserver( ( mutations ) => {                mutations.forEach( ( mutation ) => {                    if ( mutation.type === 'attributes' && visibilityTestDiv.offsetParent !== null ) {                        debouncedTriggerPostRender();                        observer.disconnect();                    }                });            });            observer.observe( document.body, {                attributes: true,                childList: false,                subtree: true,                attributeFilter: [ 'style', 'class' ],            });        } else {            triggerPostRender();        }    } );} );\n<\/script>\n<\/div>\n<\/div>\n<div id=\"content-next\"><!-- scroll anchor --><\/div>\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">How to File FBT<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You can file your FBT return online using IRD\u2019s myIR service or completing a paper return. There are three frequencies for filing:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">quarterly (IR420);<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">income year (IR421); and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">annually (IR422).<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Your choice will depend on your business structure, whether you were an employer in the previous year and how much tax you pay.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">How to Calculate Your FBT Liability<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You pay FBT on the cost of the benefit to the employee. For example, if you provide your employee with a car and they use it for both work and personal purposes, FBT applies to the cost of the car for the portion of time that is available for personal use.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">To determine how much t<\/span>ax<span style=\"font-weight: 400\"> to pay for each benefit, you need to use the formulas provided by t<\/span>he IRD<span style=\"font-weight: 400\">. These are explained in the <\/span><a href=\"https:\/\/www.ird.govt.nz\/-\/media\/project\/ir\/home\/documents\/forms-and-guides\/ir400---ir499\/ir409\/ir409-2019.pdf\"><span style=\"font-weight: 400\">FBT guide (IR409)<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">FBT can be overwhelming, so you should get professional advice if you are not sure whether your employees\u2019 benefits are taxable. If you miss out on paying t<\/span>ax<span style=\"font-weight: 400\">, you can end up with a large unexpected bill.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">How to Pay FBT<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You need to pay FBT by the date advised in your return, either electronically, by credit or debit card. When making electronic payments, you need to include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your IRD number;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a tax type code; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the period for the payment.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">If you miss a payment or you do not pay by the due date, you will have to pay penalties and interest.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When you offer benefits to your employees, in addition to their salary and wages, you have to pay FBT to Inland Revenue. Determining whether you are eligible can be complicated, so you should get legal advice if you have any doubts. You can register for FBT as part of your registration as an employer, and you will need to notify Inland Revenue if your circumstances change. You are required to file an y<\/span>our<span style=\"font-weight: 400\"> return either quarterly, annually or by income year. Your choice will depend on your company type, whether you were an employer in the previous year and how much tax you pay. To calculate your t<\/span>ax<span style=\"font-weight: 400\"> liability, you will need to refer to the formulas provided by IRD in their FBT guide (IR409). It is essential to get it right and pay on time, to avoid penalties and interest.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help assessing whether you are liable for FBT or understanding your tax obligations, <a href=\"https:\/\/legalvision.co.nz\/employment-lawyers-lp\">LegalVision\u2019s employment lawyers<\/a> can help. Call <\/span><span style=\"font-weight: 400\">0800 005 570<\/span><span style=\"font-weight: 400\"> or fill out the form on this page.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1606880228344\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>Who pays the Fringe Benefit Tax (FBT)?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">As an employer, you pay FBT on most benefits and perks you provide to your employees, their family or other associates, even if you have an arrangement with a third party to deliver the goods or services to your employees on your behalf.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880258379\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>How much is FBT in New Zealand?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">There are three different FBT rates, which depend on whether you have to attribute the benefit to a particular employee. The single rate is 49.25%, and it applies to all fringe benefits you provide to your employees. However, in some cases, it may be more beneficial for your business to use an alternate rate.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880271477\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>Is FBT tax deductible in NZ?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">As an employer, you have to file and pay FBT either on a quarterly, annually, or income year basis. You can then deduct the tax expense from your reportable income at the end of the financial year.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606989773267\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>How is FBT calculated on motor vehicles?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">When you provide motor vehicles to your employees, you can either calculate FBT on a quarterly or annual basis. To determine how much FBT to pay, you need to use the formulas provided by Inland Revenue in the FBT guide (IR409). The FBT value for each quarter is 5% of the owner&#8217;s GST inclusive cost price of the vehicle. If you file on an annual basis, the value of the benefit is 20% of the owner&#8217;s GST inclusive cost price.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"ed19fd34f0\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1148\" \/>            <input value=\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Is Fringe Benefit Tax (FBT) in New Zealand?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Work-life balance has become a priority for most employees. With this shift, benefits and perks are now a great tactic to attract and retain top talent. When you provide special perks to your employees, like gym memberships or work vehicles for personal use, you may be liable for Fringe Benefit Tax (FBT). FBT can be<a href=\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/\">Continue reading <span class=\"sr-only\">&#8220;What Is Fringe Benefit Tax (FBT) in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13217,"featured_media":908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[5],"tags":[24,25,139,142],"class_list":["post-1148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-startup","tag-small-business","tag-employer","tag-fbt"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is Fringe Benefit Tax (FBT) in New Zealand? | LegalVision New Zealand<\/title>\n<meta name=\"description\" content=\"Are you a New Zealand employer? Read this guide to understand your fringe tax benefit (FBT) obligations under New Zealand law.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is Fringe Benefit Tax (FBT) in New Zealand? | LegalVision New Zealand\" \/>\n<meta property=\"og:description\" content=\"Are you a New Zealand employer? Read this guide to understand your fringe tax benefit (FBT) obligations under New Zealand law.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/\" \/>\n<meta property=\"og:site_name\" content=\"LegalVision New Zealand\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalVision\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-11T03:51:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-03-22T21:55:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1333\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Lilly Falcon\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:site\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lilly Falcon\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/\"},\"author\":{\"name\":\"Lilly Falcon\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/person\/a3af47aa821f6465abe4abd44429e1d7\"},\"headline\":\"What Is Fringe Benefit Tax (FBT) in New Zealand?\",\"datePublished\":\"2020-12-11T03:51:07+00:00\",\"dateModified\":\"2021-03-22T21:55:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/\"},\"wordCount\":1128,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/legalvision.co.nz\/#organization\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg\",\"keywords\":[\"startup\",\"small business\",\"employer\",\"FBT\"],\"articleSection\":[\"Employment Articles\"],\"inLanguage\":\"en-NZ\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#respond\"]}]},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/\",\"url\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/\",\"name\":\"What Is Fringe Benefit Tax (FBT) in New Zealand? | LegalVision New Zealand\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.nz\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg\",\"datePublished\":\"2020-12-11T03:51:07+00:00\",\"dateModified\":\"2021-03-22T21:55:11+00:00\",\"description\":\"Are you a New Zealand employer? Read this guide to understand your fringe tax benefit (FBT) obligations under New Zealand law.\",\"breadcrumb\":{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880228344\"},{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880258379\"},{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880271477\"},{\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606989773267\"}],\"inLanguage\":\"en-NZ\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#primaryimage\",\"url\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg\",\"contentUrl\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg\",\"width\":2000,\"height\":1333,\"caption\":\"What are Zero-Hour Contracts? | LegalVision New Zealand\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/legalvision.co.nz\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\/\/legalvision.co.nz\/articles\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Employment Articles\",\"item\":\"https:\/\/legalvision.co.nz\/category\/employment\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"What Is Fringe Benefit Tax (FBT) in New Zealand?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/legalvision.co.nz\/#website\",\"url\":\"https:\/\/legalvision.co.nz\/\",\"name\":\"LegalVision New Zealand\",\"description\":\"LegalVision is a commercial law firm in NZ with a commitment to innovation\",\"publisher\":{\"@id\":\"https:\/\/legalvision.co.nz\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/legalvision.co.nz\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-NZ\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/legalvision.co.nz\/#organization\",\"name\":\"LegalVision New Zealand\",\"url\":\"https:\/\/legalvision.co.nz\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png\",\"contentUrl\":\"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png\",\"width\":400,\"height\":400,\"caption\":\"LegalVision New Zealand\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/LegalVision\",\"https:\/\/x.com\/LegalVision_law\",\"https:\/\/www.linkedin.com\/company\/legalvision-group\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/person\/a3af47aa821f6465abe4abd44429e1d7\",\"name\":\"Lilly Falcon\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/legalvision.co.nz\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96\",\"caption\":\"Lilly Falcon\"},\"description\":\"Lilly is a Senior Digital Marketing Strategist in LegalVision\u2019s Marketing team. Lilly has extensive experience in developing and executing marketing and go-to-market strategies for SMEs, startups and professional services firms. She also has proven experience in analysing customer behaviour data to drive revenue and creating content for various mediums and audiences.\",\"sameAs\":[\"lillyfalcon\"],\"url\":\"https:\/\/legalvision.co.nz\/author\/lillyfalcon\/\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880228344\",\"name\":\"Who pays the Fringe Benefit Tax (FBT)?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"As an employer, you pay FBT on most benefits and perks you provide to your employees, their family or other associates, even if you have an arrangement with a third party to deliver the goods or services to your employees on your behalf.\",\"inLanguage\":\"en-NZ\"},\"inLanguage\":\"en-NZ\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880258379\",\"name\":\"How much is FBT in New Zealand?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"There are three different FBT rates, which depend on whether you have to attribute the benefit to a particular employee. The single rate is 49.25%, and it applies to all fringe benefits you provide to your employees. However, in some cases, it may be more beneficial for your business to use an alternate rate.\",\"inLanguage\":\"en-NZ\"},\"inLanguage\":\"en-NZ\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880271477\",\"name\":\"Is FBT tax deductible in NZ?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"As an employer, you have to file and pay FBT either on a quarterly, annually, or income year basis. You can then deduct the tax expense from your reportable income at the end of the financial year.\",\"inLanguage\":\"en-NZ\"},\"inLanguage\":\"en-NZ\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606989773267\",\"name\":\"How is FBT calculated on motor vehicles?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"When you provide motor vehicles to your employees, you can either calculate FBT on a quarterly or annual basis. To determine how much FBT to pay, you need to use the formulas provided by Inland Revenue in the FBT guide (IR409). The FBT value for each quarter is 5% of the owner's GST inclusive cost price of the vehicle. If you file on an annual basis, the value of the benefit is 20% of the owner's GST inclusive cost price.\",\"inLanguage\":\"en-NZ\"},\"inLanguage\":\"en-NZ\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Is Fringe Benefit Tax (FBT) in New Zealand? | LegalVision New Zealand","description":"Are you a New Zealand employer? Read this guide to understand your fringe tax benefit (FBT) obligations under New Zealand law.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/","og_locale":"en_US","og_type":"article","og_title":"What Is Fringe Benefit Tax (FBT) in New Zealand? | LegalVision New Zealand","og_description":"Are you a New Zealand employer? Read this guide to understand your fringe tax benefit (FBT) obligations under New Zealand law.","og_url":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/","og_site_name":"LegalVision New Zealand","article_publisher":"https:\/\/www.facebook.com\/LegalVision","article_published_time":"2020-12-11T03:51:07+00:00","article_modified_time":"2021-03-22T21:55:11+00:00","og_image":[{"width":2000,"height":1333,"url":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg","type":"image\/jpeg"}],"author":"Lilly Falcon","twitter_card":"summary_large_image","twitter_creator":"@LegalVision_law","twitter_site":"@LegalVision_law","twitter_misc":{"Written by":"Lilly Falcon","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#article","isPartOf":{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/"},"author":{"name":"Lilly Falcon","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/a3af47aa821f6465abe4abd44429e1d7"},"headline":"What Is Fringe Benefit Tax (FBT) in New Zealand?","datePublished":"2020-12-11T03:51:07+00:00","dateModified":"2021-03-22T21:55:11+00:00","mainEntityOfPage":{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/"},"wordCount":1128,"commentCount":0,"publisher":{"@id":"https:\/\/legalvision.co.nz\/#organization"},"image":{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#primaryimage"},"thumbnailUrl":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg","keywords":["startup","small business","employer","FBT"],"articleSection":["Employment Articles"],"inLanguage":"en-NZ","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#respond"]}]},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/","url":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/","name":"What Is Fringe Benefit Tax (FBT) in New Zealand? | LegalVision New Zealand","isPartOf":{"@id":"https:\/\/legalvision.co.nz\/#website"},"primaryImageOfPage":{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#primaryimage"},"image":{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#primaryimage"},"thumbnailUrl":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg","datePublished":"2020-12-11T03:51:07+00:00","dateModified":"2021-03-22T21:55:11+00:00","description":"Are you a New Zealand employer? Read this guide to understand your fringe tax benefit (FBT) obligations under New Zealand law.","breadcrumb":{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880228344"},{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880258379"},{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880271477"},{"@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606989773267"}],"inLanguage":"en-NZ","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/"]}]},{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#primaryimage","url":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg","contentUrl":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_056.jpg","width":2000,"height":1333,"caption":"What are Zero-Hour Contracts? | LegalVision New Zealand"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.nz\/"},{"@type":"ListItem","position":2,"name":"Articles","item":"https:\/\/legalvision.co.nz\/articles\/"},{"@type":"ListItem","position":3,"name":"Employment Articles","item":"https:\/\/legalvision.co.nz\/category\/employment\/"},{"@type":"ListItem","position":4,"name":"What Is Fringe Benefit Tax (FBT) in New Zealand?"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.nz\/#website","url":"https:\/\/legalvision.co.nz\/","name":"LegalVision New Zealand","description":"LegalVision is a commercial law firm in NZ with a commitment to innovation","publisher":{"@id":"https:\/\/legalvision.co.nz\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.nz\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-NZ"},{"@type":"Organization","@id":"https:\/\/legalvision.co.nz\/#organization","name":"LegalVision New Zealand","url":"https:\/\/legalvision.co.nz\/","logo":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/","url":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","contentUrl":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","width":400,"height":400,"caption":"LegalVision New Zealand"},"image":{"@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LegalVision","https:\/\/x.com\/LegalVision_law","https:\/\/www.linkedin.com\/company\/legalvision-group"]},{"@type":"Person","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/a3af47aa821f6465abe4abd44429e1d7","name":"Lilly Falcon","image":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96","caption":"Lilly Falcon"},"description":"Lilly is a Senior Digital Marketing Strategist in LegalVision\u2019s Marketing team. Lilly has extensive experience in developing and executing marketing and go-to-market strategies for SMEs, startups and professional services firms. She also has proven experience in analysing customer behaviour data to drive revenue and creating content for various mediums and audiences.","sameAs":["lillyfalcon"],"url":"https:\/\/legalvision.co.nz\/author\/lillyfalcon\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880228344","name":"Who pays the Fringe Benefit Tax (FBT)?","acceptedAnswer":{"@type":"Answer","text":"As an employer, you pay FBT on most benefits and perks you provide to your employees, their family or other associates, even if you have an arrangement with a third party to deliver the goods or services to your employees on your behalf.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880258379","name":"How much is FBT in New Zealand?","acceptedAnswer":{"@type":"Answer","text":"There are three different FBT rates, which depend on whether you have to attribute the benefit to a particular employee. The single rate is 49.25%, and it applies to all fringe benefits you provide to your employees. However, in some cases, it may be more beneficial for your business to use an alternate rate.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606880271477","name":"Is FBT tax deductible in NZ?","acceptedAnswer":{"@type":"Answer","text":"As an employer, you have to file and pay FBT either on a quarterly, annually, or income year basis. You can then deduct the tax expense from your reportable income at the end of the financial year.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/employment\/what-is-fbt-in-new-zealand\/#faq-question-1606989773267","name":"How is FBT calculated on motor vehicles?","acceptedAnswer":{"@type":"Answer","text":"When you provide motor vehicles to your employees, you can either calculate FBT on a quarterly or annual basis. To determine how much FBT to pay, you need to use the formulas provided by Inland Revenue in the FBT guide (IR409). The FBT value for each quarter is 5% of the owner's GST inclusive cost price of the vehicle. If you file on an annual basis, the value of the benefit is 20% of the owner's GST inclusive cost price.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/1148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13217"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=1148"}],"version-history":[{"count":3,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/1148\/revisions"}],"predecessor-version":[{"id":203981,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/1148\/revisions\/203981"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/908"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=1148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=1148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=1148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}