New Zealand

Details

  • Service: Tax, International Executive Services (IES)
  • Type: Business and industry issue
  • Date: 24/04/2012

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Rebecca Armour

Director - Tax

+64 9 367 5926

rarmour@kpmg.co.nz

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FBT exemptions: Benefits & salary trade-offs 

FBT exemptions

Implications for employers

Proposed tax change will restrict the FBT exemption for on-premises benefits if provided in substitution for salary.

 

This means car parks, child care and other benefits will become taxable, either through FBT or PAYE.

 

This will create additional tax and compliance costs for employers, and could impact remuneration packages and employees’ take home pay.

 

Implications for charities

Proposed tax change will restrict the FBT exemption for charities if the benefit is provided in substitution for salary.  Many benefits provided by charities will become taxable, either through FBT or PAYE.

 

This will create significant tax and compliance costs for charities, and impact remuneration packages.

 

 

Taxmail - Comment on topical tax issues from KPMG NZ Tax. 
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