Fringe Benefit Tax (FBT)

A fringe benefit is the benefit provided to an employee or an associate of an employee by an employer or the other person under the arrangement with the employer in respect of employment.

The following benefits may be subjected to Fringe Benefit Tax

–          Car

–          Debt Waiver

–          Loan

–          Expenses Payment

–          Living-away-from home allowance if it exceeds the reasonable rate

–          Meal and entertainment expenses if it exceeds the reasonable rate

–          Car parking

–          Residual (in-house residual benefit)

If you are providing the above benefit to your employees and value of benefit is less than $1,000 each employee or the benefit is business tax deduction, you may not liable for the Fringe Benefit Tax