What is FBT – Fringe Benefit Tax?

FBT – Fringe Benefit Tax (Definition)

FBT is the abbreviation for fringe benefits tax. A fringe benefit is a non-monetary benefit payment made to an employee on top of their normal salary or wages. FBT is paid by the employers on certain benefits – not the employee. Employees also includes the family of employees or associates (family friends). FBT also applies to benefits provided by third parties that have been organised by an employer. FBT is calculated on the taxable value of the benefit and is separate to income tax. Examples of fringe benefits are, work car and computer, gym membership, a discounted loan, entertainment such as concert tickets, meals, or drinks, providing accommodation either rent free or at a reduced rate.

Ready to run your business better with QuickBooks Online?