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Income Tax Act 2007

General collection rules - Employment-related taxes - Options for payment of FBT

RD 58: Single rate option

You could also call this:

“Option to pay fringe benefit tax at a fixed rate each quarter”

When you choose to pay your fringe benefit tax (FBT) using the single rate option, you need to pay 63.93% of the taxable value of a fringe benefit for each quarter of the tax year. This means you’ll make four payments throughout the year.

If you want, you can ask the Commissioner to change how your FBT is calculated for the last quarter. Instead of using the single rate option, you can ask for it to be worked out using a different method. This other method is explained in another part of the law called section RD 59(4). If you want to do this, you’ll need to give the Commissioner all the information they need to make the calculation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520125.

Topics:
Money and consumer rights > Taxes
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RD 59: Alternate rate option, or

“Choose how to pay fringe benefit tax throughout the year”

Part R General collection rules
Employment-related taxes: Options for payment of FBT

RD 58Single rate option

  1. An employer who chooses to pay their FBT liability under the single rate option must pay FBT at the rate of 63.93% of the taxable value of a fringe benefit for each of the 4 quarters of a tax year.

  2. Despite subsection (1), an employer may ask the Commissioner to replace the FBT liability determined for the final quarter under this section with an amount calculated under section RD 59(4). The employer must provide the information necessary for the calculation.

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Notes
  • Section RD 58(1): substituted, on (applying for the 2011–12 income year and later income years), by section 67(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
  • Section RD 58(1): amended, on , by section 10 (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
  • Section RD 58 list of defined terms ask: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).