In the below webinar recording, you can hear from Inland Revenue and KPMG’s FBT experts on possible changes to New Zealand’s FBT regime and their potential impact.
The options, which have been developed following a 2022 Regulatory Stewardship review into FBT, are aimed at simplifying and updating the rules for modern remuneration practices and the nature of benefits being provided. They include:
- A new FBT valuation basis for motor vehicles, based on fuel type.
- A new methodology for calculating the taxable value for FBT purposes based on how a motor vehicle is used, rather than vehicle type (with the “work related vehicle” distinction proposed to be removed as a result).
- Excluding unclassified benefits from FBT based on either: a per benefit cap (less than $200 and not linked to remuneration) or a scheduler approach.
- Moving entertainment expenses into the FBT regime.
- Requiring greater information on categories (and sub-categories) of fringe benefits provided and a confirmation that FBT obligations on motor vehicles have been complied with when filing the income tax return.
The scope for change and the potential impact is wide. All employers are therefore likely to be impacted, if some or all of these changes proceed. The webinar aims to provide more detail on the proposed changes and what businesses need to be thinking about, including as part of the feedback process (submissions on the FBT issues paper are due by 5 May).
You can also read KPMG’s taxmail on the FBT issues paper here.
