Fringe Benefit Tax (FBT) Returns: Who Qualifies and What You Get
Learn how employers in New Zealand manage tax returns for non-cash benefits provided to employees.
Fringe Benefit Tax (FBT) returns are a tax requirement for businesses that provide non-cash benefits to their employees. A non-cash benefit is any perk or advantage given to a worker that is not part of their regular cash salary.
Who it's for
This scheme applies to employers who provide various types of non-cash benefits to their staff. If your business gives employees items or services instead of money as part of their compensation, you likely fall under these rules.
What you get
By following these requirements, you fulfill your legal obligation to report these perks. This involves submitting filings either on a quarterly or annual basis, depending on your specific requirements.
What it costs you
There is no direct fee to file, but it does require a significant investment of time. You must maintain detailed and accurate records of all benefits provided to ensure your filings are correct.
The catch to know
The most common reason for an audit is the private use of company vehicles. If employees use business cars for personal trips, these must be tracked very carefully to avoid issues.
How to apply
- Determine if the benefits you provide to employees qualify as non-cash benefits.
- Set up a system to keep detailed records of these benefits.
- Determine if you need to file your returns quarterly or annually.
- Submit your completed filings through the official government tax portal.