Motor vehicles (Fringe benefit tax on specific categories of benefits

By: Inland Revenue Department  06-Dec-2011
Keywords: Fringe Benefit Tax, Fringe Benefit

As a general rule, as long as you have a vehicle available for an employee to use privately, you will have to pay FBT whether or not your employee actually uses the vehicle privately. But there are certain exemptions from FBT - general and daily.

Find out the different options for calculating the taxable value of a motor vehicle, including determining the value of pooled vehicles, and calculating the taxable value of the private use of a vehicle.

To meet the requirements for fringe benefit tax on motor vehicles, or claim a general exemption or daily exemption on them, you must keep adequate records.

Describes general principles of when motor vehicles are liable for FBT, and requirements for different business types.

Using a three-month period means that rather than recording every daily exemption a vehicle qualifies for over its whole life, you can now simply keep these full records for just three months.

General exemptions apply to work-related vehicles not available for general private use, work-related vehicles with limited private use (partial exemption), vehicles stored on the employer's premises and vehicles over 3,500 kilograms.

If a motor vehicle provided to an employee is available for their private use, it may still be exempt from fringe benefit tax on certain days.

Date published: 14 Oct 2004


Keywords: Fringe Benefit, Fringe Benefit Tax

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Fringe benefit tax on specific categories of benefits (Fringe benefit tax (FBT

As a general rule, as long as you have a vehicle available for an employee to use privately, you will have to pay FBT whether or not your employee actually uses the vehicle privately. Motor vehicles, low-interest loans, free, subsidised or discounted goods and services, employer contributions to funds, insurance and superannuation schemes and other benefits.