Fringe Benefit Tax Rate Lowered

June 23, 2009 New Zealand Taxation  No comments

The rate at which fringe benefit tax is calculated on low-interest employment related loans has been lowered.

The rate used to determine the Fringe Benefit Tax (FBT) on low-cost employment related loans will drop from its current rate of 8.05% to 6.41%. The change was announced and set by Order in Council on the 22nd of July, and will come into effect on the 1st of July. The change was announced by Revenue Minister Peter Dunne.

The fall of 164 basis points in this rate is attributed to the change in variable first mortgage housing interest rates surveys, since the last rate change, in January.