FBT rate for low-interest loans decreases
2016 Order in Council sets the prescribed rate of interest used to calculate fringe benefit tax on low-interest, employment-related loans at 5.77% from 1 Jan 2016.
The prescribed rate of interest used to calculate fringe benefit tax on low-interest, employment-related loans is 5.77%, down from the previous rate of 5.99% which applied from the quarter beginning 1 October 2015.
The new rate applies for the quarter beginning 1 January 2016.
The rate is reviewed regularly to align it with the results of the Reserve Bank’s survey of variable first mortgage housing rates.
The new rate was set by Order in Council on 22 February 2016.
Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2016 (LI 2016/31)