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Income Tax Act 2007

General collection rules - Employment-related taxes - Introductory provisions

RD 25: FBT rules and their application

You could also call this:

“Rules for taxing extra benefits employers give to workers”

The FBT rules are a set of laws that you need to know about if you’re interested in fringe benefits. These rules include several parts of the Income Tax Act 2007 and some parts of the Tax Administration Act 1994.

The FBT rules cover things like what counts as a fringe benefit, how to calculate their value, and what tax rates apply to them. They also include rules about how employers should report and pay tax on fringe benefits.

You’ll find these rules in different sections of the law. For example, sections CX 2 to CX 38 talk about what fringe benefits are. Sections RD 26 to RD 63 explain more details about how the rules work.

There are also special schedules that give information about tax rates and how to value fringe benefits for cars.

These FBT rules apply when an employer gives a fringe benefit to their employee as part of their job. So if your boss gives you something extra on top of your regular pay, these rules might come into play.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519997.

Topics:
Money and consumer rights > Taxes
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RD 24: Exemptions for non-resident contractors, or

“When non-resident contractors can avoid tax deductions from their payments”

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RD 26: Liability for FBT, or

“Employer's responsibility to pay tax on employee benefits”

Part R General collection rules
Employment-related taxes: Introductory provisions

RD 25FBT rules and their application

  1. The FBT rules means—

  2. sections CX 2 to CX 38 (which relate to fringe benefits); and
    1. sections GA 2, GB 31, and GB 32 (which relate to FBT); and
      1. sections RD 26 to RD 63; and
        1. schedules 1, part C (Basic tax rates: income tax, ESCT, RWT, and attributed fringe benefits) and 5 (Fringe benefit values for motor vehicles); and
          1. sections 46B to 46E, 93, Part 7, and section 139B of the Tax Administration Act 1994.

            1. The FBT rules apply to an employer who provides a fringe benefit to their employee in connection with their employment.

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