Fringe Benefit Tax (FBT)
When a business supplies benefit to employees or shareholder employees that are not taxed (for example personal use of a company vehicle, a free loan, etc) then these are the things fringe benefit tax is designed to capture.
The goal of the tax is to level the playing field, so all the compensation paid to an employee is taxed as if it were a cash payment.
There are various ways this tax can apply to your business and, if it does, you may also need to account for GST on the FBT as well.
This is actually quite complex, so if you think you may be liable for FBT, please contact Sharon so she can have a look at your specific situation.
When a business supplies benefit to employees or shareholder employees that are not taxed (for example personal use of a company vehicle, a free loan, etc) then these are the things fringe benefit tax is designed to capture.
The goal of the tax is to level the playing field, so all the compensation paid to an employee is taxed as if it were a cash payment.
There are various ways this tax can apply to your business and, if it does, you may also need to account for GST on the FBT as well.
This is actually quite complex, so if you think you may be liable for FBT, please contact Sharon so she can have a look at your specific situation.
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