Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Excluded income - Exclusions and limitations

CX 26: Non-liable payments

You could also call this:

“Job benefits not taxed when your income isn't taxed”

If you get a benefit from your job, it’s not always counted as a fringe benefit. This happens when you receive the benefit in a quarter or income year where all your pay-as-you-earn (PAYE) income payments are not taxed.

If you’re not living in New Zealand but you get a PAYE income payment that is taxed in New Zealand, the rules are a bit different. In this case, the benefit you receive might still be partly counted as a fringe benefit. It depends on how much time you spend in New Zealand. Only the part of the benefit that relates to your time in New Zealand is counted as a fringe benefit.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513387.

Topics:
Money and consumer rights > Taxes
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“Tax rules for benefits from charities to their employees”

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CX 27: Assistance with tax returns, or

“Employer help with tax returns isn't a fringe benefit”

Part C Income
Excluded income: Exclusions and limitations

CX 26Non-liable payments

  1. A benefit received by an employee is not a fringe benefit to the extent to which it is received in a quarter or in an income year in which they derive 1 or more pay-as-you-earn (PAYE) income payments, all of which are not liable for income tax.

  2. Despite subsection (1), some or all of a benefit received by an employee who is not resident in New Zealand but derives a PAYE income payment that is taxable in New Zealand is a fringe benefit only to the extent to which the benefit relates to time spent by the employee in New Zealand.

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Notes
  • Section CX 26(1) heading: inserted, on , by section 28(1)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section CX 26(2) heading: inserted, on , by section 28(1)(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section CX 26(2): inserted, on , by section 28(1)(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section CX 26 list of defined terms New Zealand: inserted, on , by section 28(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section CX 26 list of defined terms resident: inserted, on , by section 28(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).