Fringe benefit tax (“FBT”) is an indirect tax payable by employers which applies to non-cash benefits provided to employees.
Non-cash benefits are usually an integral part of an employee’s remuneration package, often taking the form of company cars, car parks and medical insurance, to name but a few.
As the global demand for talent continues, the need to provide non-cash benefits to supplement cash remuneration is increasing. But the additional cost employers face in light of the increase in FBT rate to 63.93% is challenging for employers to absorb.
How we can support you
KPMG works alongside employers to develop tax efficient remuneration strategies for their employees, giving employers the support that they need to provide employees with benefits that they truly value.
Our services cover a full spectrum of FBT support including:
- Detailed analysis of fringe benefits and associated tax treatment
- Detailed or high-level FBT health-checks
- FBT voluntary disclosures or repayment claims
- Review of and advising on the design of employee remuneration packages
- Preparation of FBT governance and accompanying process framework documentation
- Assistance with managing FBT compliance filing obligations
- Preparation or review of FBT attribution calculations
- Advice regarding cross-border FBT compliance obligations
- Drafting of comprehensive FBT return preparation guides for internal finance teams
- FBT demonstrations on commercially available third-party software and analysis of advantages and disadvantages of adoption.