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Income Tax Act 2007

General collection rules - Employment-related taxes - Attributing fringe benefits to employees

RD 52: Calculation for certain employees when information lacking

You could also call this:

“Calculating fringe benefits tax when employer lacks employee information”

When your employer doesn’t have enough information to figure out your fringe benefits tax, this rule applies to you if you’re a shareholder-employee getting a salary or other income, or if you’re an employee getting income from a company or trust that employs you.

If this rule applies to you, your employer can’t use the normal ways to calculate your fringe benefits tax for that year.

Your employer has two choices. They can either pay fringe benefits tax at 49.25% of the value of your fringe benefits for the year and use the normal calculation methods next year, or they can pay fringe benefits tax at 63.93% of the value of your fringe benefits for the year.

This rule helps make sure that fringe benefits tax is paid even when your employer doesn’t have all the information they need to do the usual calculations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520105.

Topics:
Money and consumer rights > Taxes
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RD 51: Calculation of all-inclusive pay, or

“How to work out an employee's total pay including benefits”

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RD 53: Pooling non-attributed benefits, or

“Grouping certain employee benefits for tax purposes”

Part R General collection rules
Employment-related taxes: Attributing fringe benefits to employees

RD 52Calculation for certain employees when information lacking

  1. This section applies in relation to the following persons when an employer does not have sufficient information to complete a calculation under section RD 50 or RD 51:

  2. a shareholder-employee who derives salary or wages, or income, other than from a PAYE income payment, to which section RD 3B or RD 3C applies; or
    1. an employee receiving attributed income under section GB 29 (Attribution rule: calculation) from a company or trust that is their employer.

      1. Sections RD 50 and RD 51 do not apply in the tax year or income year, as applicable, in which the employer is required to attribute a fringe benefit to the employee.

      2. The employer must either—

      3. pay FBT at the rate of 49.25% of the taxable value of the fringe benefits attributed for the tax year, and apply sections RD 50 and RD 51 to the benefits in the next tax year; or
        1. pay FBT at the rate of 63.93% of the taxable value of the fringe benefits attributed for the tax year.

          Compare
          Notes
          • Section RD 52(1)(a): amended, on (with effect on 30 March 2017), by section 213 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section RD 52(3)(a): amended, on , by section 8(1) (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
          • Section RD 52(3)(b): amended, on , by section 8(2) (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).