Small Business Tax Dictionary

Fringe Benefit Tax (FBT) is a tax in New Zealand on non-cash benefits provided to employees or their associates. These benefits may include company cars, low-interest loans, or subsidised accommodation. FBT is paid by the employer and is separate from income tax. Compliance with FBT regulations requires understanding the types of benefits subject to the tax, calculating the taxable value, and reporting accurately. Proper management of FBT supports fair employment practices and maintains compliance with New Zealand tax laws, contributing to transparent and responsible business operations.