Fringe Benefit Tax Set to Rise

August 28, 2008 New Zealand Taxation  No comments

Low-interest employer provided loans are set to face Fringe Benefit Tax raises in October, announced Revenue Minister Peter Dunne.

While Fringe Benefit Tax is charged on any benefits and perks received by an employee, this tax rise will only target low-interest loans.

The decision comes as a result of regular reviews, which aim to keep the tax rate in line with the results of the Reserve Bank’s survey of first mortgage interest rates. The announced tax rise will bring the rate from its current 10.57 percent to 10.9 percent.