Calculate Fringe Benefit Tax (FBT) for your New Zealand business. This NZ FBT calculator covers the three most common fringe benefit scenarios: motor vehicles, low-interest or interest-free loans, and other general fringe benefits. Select the benefit type, enter the relevant values, and choose whether to use the single rate or alternate rate method. The calculator shows your quarterly FBT liability and annual FBT payable.
Fringe Benefit Tax (FBT) is a tax employers pay to Inland Revenue on benefits provided to employees in addition to their salary or wages. FBT is the employer's liability, not the employee's, and is filed and paid quarterly (with a possible annual wash-up in the fourth quarter). Common fringe benefits subject to FBT include company vehicles available for private use, interest-free or low-interest loans, and subsidised or free goods and services.
The single rate is 49.25%, applied to the taxable value of all fringe benefits regardless of the employee's income. The short-form alternate rate allows employers to apply a lower rate (43%) for employees earning under $57,600, the standard rate (49.25%) for those earning $57,601 to $160,000, and the higher rate (63.93%) for those earning over $160,000 or shareholder-employees. Most small employers use the single rate for simplicity.
If an employee has a company vehicle available for private use, the annual taxable value is 20% of the GST-inclusive cost price (or open market value if leased). This is divided equally across four quarters. Even if the vehicle is rarely used privately, FBT applies once it is available for private use, typically evidenced by being parked at the employee's home overnight.
If an employer provides a loan at a rate below the IRD prescribed rate, FBT applies to the interest rate shortfall. The taxable value each quarter is the difference between the prescribed rate and the actual rate, applied to the average loan balance for that quarter. The prescribed rate changes each quarter, so always check ird.govt.nz for the current rate before filing.
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