Fringe Benefit Tax

An employer who provides a fringe benefit to an employee (or a shareholder-employee) may have to pay fringe benefit tax (FBT). The Commissioner has published several items on FBT. This overview sets out these items, organised by subject.

General principles
Guidance on specific benefits:
Charities and donee organisations
Health & safety exemption

The Commissioner issues different types of guidance items to cater for different customer needs. The different types of items are explained here.

General principles

Title	Summary	Date issued
The meaning of "benefit" QB (Jan 2006)	This QWBA discusses the meaning of 'benefit' for FBT purposes.	Jan 2006
"Availability" benefits QB 12/06	This QWBA considers whether the mere availability of a good or service provided by an employer to an employee makes it a fringe benefit.	30 Mar 2012
The FBT, GST and income tax treatment of an employee contribution to fringe benefit QB 19/12	This QWBA explains the fringe benefit tax, GST and income tax treatment of an employee contribution to a fringe benefit.	28 Aug 2019
Provision of benefits by third parties BR Pub 14/10	This Ruling considers when a benefit provided to an employee by a third party is a fringe benefit. Applies from the 2014/15 income year.	28 Nov 2014
Non-resident employers' obligations to deduct PAYE, FBT and ESCT OS 21/04	This OS provides guidance on non-resident employers' obligations to deduct PAYE, FBT and ESCT in certain cross-border employment situations.	1 Dec 2021

Guidance on specific benefits

Allowances

Title	Summary	Date issued
Allowances paid and benefits provided to farm workers QB 18/13	This QWBA considers the income tax treatment of allowances paid and benefits provided to employees in a farming context. Specifically, it considers whether non-cash benefits paid to employees are subject to FBT.	13 Jun 2018

Title

Summary

Date issued

Allowances paid and benefits provided to farm workers

QB 18/13

This QWBA considers the income tax treatment of allowances paid and benefits provided to employees in a farming context. Specifically, it considers whether non-cash benefits paid to employees are subject to FBT.

13 Jun 2018

Brokerage fees

Title	Summary	Date issued
The FBT value of brokerage services provided by sharebrokers to employees QB 2006	This QWBA explains how to determine the value for FBT purposes of brokerage services provided by sharebrokers to their employees. Applies from March 2006.	2006

Title

Summary

Date issued

The FBT value of brokerage services provided by sharebrokers to employees

QB 2006

This QWBA explains how to determine the value for FBT purposes of brokerage services provided by sharebrokers to their employees.

Applies from March 2006.

2006

Carparks

Title	Summary	Date issued
FBT treatment of car parks provided to employees on an employer’s premises or on the premises of a company that is part of the same group of companies as the employer BR Pub 15/11-15/12	These Rulings address the on-premises exclusion from FBT for car parking provided to employees in car parks owned or leased by an employer, or on the premises of a company that is part of the same group of companies as the employer.	17 Nov 2015
FBT and car parks Operational position	This OP on FBT and car parks supports BR 15/11 and BR 15/12 which concern the on-premises exclusion from FBT for car parking.	18 Nov 2015

Title

Summary

Date issued

FBT treatment of car parks provided to employees on an employer’s premises or on the premises of a company that is part of the same group of companies as the employer

BR Pub 15/11-15/12

These Rulings address the on-premises exclusion from FBT for car parking provided to employees in car parks owned or leased by an employer, or on the premises of a company that is part of the same group of companies as the employer.

17 Nov 2015

FBT and car parks

Operational position

This OP on FBT and car parks supports BR 15/11 and BR 15/12 which concern the on-premises exclusion from FBT for car parking.

18 Nov 2015

Cryptocurrency

Title	Summary	Date issued
Employer issued cryptoassets provided to an employee BR Pub 23/06	This Ruling considers when cryptoassets issued by an employer and paid to an employee will be a fringe benefit, how the benefit is valued and the time at which the benefit is provided. Applies from 30 July 2022.	15 May 2023

Title

Summary

Date issued

Employer issued cryptoassets provided to an employee

BR Pub 23/06

This Ruling considers when cryptoassets issued by an employer and paid to an employee will be a fringe benefit, how the benefit is valued and the time at which the benefit is provided.

Applies from 30 July 2022.

15 May 2023

Insurance

Title	Summary	Date issued
Personal sickness & accident insurance taken out by an employer QB 18/05	This QWBA considers the income tax and FBT treatment of a personal sickness or accident insurance policy taken out by an employer for the benefit of an employee. Applies from 30 Mar 2017.	23 Feb 2018
Term life insurance policy taken out by an employer QB 18/03	This QWBA considers the income tax and FBT treatment of term life insurance policies taken out by employers for employees. Applies from 30 Mar 2017.	23 Feb 2018
Group insurance policy taken out by an employer QB 17/10	This QWBA considers the income tax and FBT treatment of group insurance policies taken out by an employer who holds the policy on behalf of its employees.	20 Dec 2017
Discounted premiums on life insurance policies provided to life agents and associated persons. BR Pub 10/08	This Ruling considers the FBT treatment of discounted premiums on life insurance policies received by life agents and associated persons from the life agent's employer. This Ruling is grouped with BR Pub 10/07 which considers the income tax implications of this arrangement. Applies from 2008/2009 income year.	29 Apr 2010
FBT & the US Federal Insurance Contribution Act (FICA) BR Pub 09/02	This Ruling considers whether FBT applies to FICA contributions paid by an American employer of a US citizen in NZ. Applies from 1 Jul 2009.	30 Apr 2009

Motor vehicles

Title	Summary	Date issued
WorkRide Limited BR Prd 23/06	This Ruling considers WorkRide’s provision of self-powered or low-powered commuting vehicles (Equipment) to the employees of WorkRide’s customers, where the employees agree to a temporary reduction in salary in return for the temporary lease of Equipment and the opportunity to own the Equipment at the end of the lease period. Examples of Equipment are bicycles, electric bicycles, scooters and electric scooters. Applies from 1 December 2023 to 30 November 2026	5 Dec 2023
FBT and motor vehicles IS 17/07	This IS explains when a motor vehicle fringe benefit arises. It also outlines the three exemptions from FBT for motor vehicles and sets out how to calculate FBT on a motor vehicle fringe benefit.	29 Aug 2017
Meaning of the term “cost price of the vehicle” BR Pub 09/08	This Ruling explains what is included in the "cost price" of a motor vehicle for FBT purposes. Applies from 1 Nov 2008.	30 Nov 2009
Travel by motor vehicle between home and work IS3448	This IS contains guidelines for determining whether travel between home and work is deductible and when travel between home and work will be treated as work-related use (rather than private use or enjoyment) for FBT purposes.	1 Oct 2004
Value of a motor vehicle previously owned by the employer or an associated person QB 10/03	This QWBA discusses when the value of a motor vehicle for FBT will be affected by the vehicle having previously been owned by the employer or associated person of the employer. Applies to FBT periods beginning on or after the first day of the 2008/2009 income year.	2010

Transport

Title	Summary	Date issued
Employer-provided travel to a distant workplace OS 19/05	This OS clarifies the income tax and FBT treatment of employer-provided travel to distant workplaces.	18 Dec 2019

Title

Summary

Date issued

Employer-provided travel to a distant workplace

OS 19/05

This OS clarifies the income tax and FBT treatment of employer-provided travel to distant workplaces.

18 Dec 2019

Charities and donee organisations

Title	Summary	Date issued
Charities and donee organisations – Part 1 charities OS 22/04 Part 1 and Fact Sheet	This OS (and accompanying Fact sheet) outline the tax treatment and obligations that apply to charities and how the Commissioner will apply the relevant legislation, including the FBT exemption.	10 Oct 2022
Charitable and other donee organisations BR Pub 22/06 and Fact Sheet	This Ruling (and accompanying Fact sheet) consider when benefits provided by charitable organisations to their employees are excluded from being treated as fringe benefits. Applies from 1 July 2022.	31 May 2022

Title

Summary

Date issued

Charities and donee organisations – Part 1 charities

OS 22/04 Part 1 and Fact Sheet

This OS (and accompanying Fact sheet) outline the tax treatment and obligations that apply to charities and how the Commissioner will apply the relevant legislation, including the FBT exemption.

10 Oct 2022

Charitable and other donee organisations

BR Pub 22/06 and Fact Sheet

This Ruling (and accompanying Fact sheet) consider when benefits provided by charitable organisations to their employees are excluded from being treated as fringe benefits.

Applies from 1 July 2022.

31 May 2022

Health and safety exemption

Title	Summary	Date issued
Health & Safety FBT exemption	This article explains the health and safety FBT exemption.	2018