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Income Tax Act 2007

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

RD 62B: Obligations of cross-border employees when FBT liability not paid

You could also call this:

“Cross-border employees' tax duties for fringe benefits received in New Zealand”

If you are a cross-border employee who gets a fringe benefit while working in New Zealand, this law applies to you. If you and your employer agree in writing that you will handle the tax for this benefit, you need to do two things. First, you must treat the value of the fringe benefit as if it were part of your pay. You need to take out the tax and pay it, just like an employer would. Second, you must provide the required information as stated in section 23I of the Tax Administration Act 1994. Your employer should give you any information you need for this that you don’t already have. However, you don’t have to pay the tax if you’re exempt from it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS851117.

Topics:
Money and consumer rights > Taxes
Work and jobs > Worker rights
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RD 62: Changes in payment periods, or

“How and when you can change your FBT payment schedule”

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RD 63: When employer stops employing staff, or

“ Rules for paying tax on employee benefits when you stop employing staff ”

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

RD 62BObligations of cross-border employees when FBT liability not paid

  1. This section applies when a cross-border employee receives a fringe benefit in relation to a period when they are providing employment services in New Zealand.

  2. If the employer and employee agree and record in a document that the employee is liable for employment-related tax obligations, the employee must—

  3. treat the value of the fringe benefit as a PAYE income payment and withhold and pay tax as if an employer; and
    1. provide the relevant information required under section 23I of the Tax Administration Act 1994. The employer must provide the employee with the relevant information that the employee does not have.

      1. Subsection (2)(a) does not apply if the employee is exempt from paying the amount of the liability.

      Notes
      • Section RD 62B: inserted, on , by section 105 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).