How is the GST on employee benefits in New Zealand reported?
Free meals such as staff parking spaces and lunch evenings are rare in New Zealand, not only because New Zealand businesses are generally small and do not need to "feed" a canteen, but also because New Zealand has strict and high taxes on such "collateral benefits", known as FBT-Fringe Benefit Tax.
However, still can not avoid some rich and atmospheric companies, for employees to "profit" a variety of benefits, to retain high-quality and high-capacity personnel for their own enterprise services. So, if there is an "employee benefit tax", can a company "come back" some of the GST, or use the GST to offset a portion of the tax payable?
If a company's property is used for private use, then it is up to the situation to adjust the GST contribution. For example, the company bought a yacht, which is leased to make a profit for the company 60 percent of the time, and the company owner himself took his family fishing vacation. Then, 60% of the yacht price and operating expenses part can apply to the Tax Office for a GST refund, while the remaining 40% can not get GST back.
"If a business had "benefits" such as small low-interest loans to employees, overseas travel and life insurance, which were themselves GST exempt items, there would be no GST claim this time around.
If you're Sole Trader, Partner, Trust Member, or Associate Person, then most of the time "personal is using the company", this time you need to make additional special adjustments in the FBT project to match the GST Claim that needs to be made.
In general, FBT is a more sensitive and complex tax component, and the mixing of GST and "public-private" issues often requires more care. And IRD also likes to "care" these "public property private use" of the problem, in the above tax chase is very tight, if you do not understand the content of this aspect, either try not to appear FBT problems, or ask a professional accountant to help you with tax returns.
Employee benefit tax, known in English as Fringe Benefit Tax, or FBT, is a tax calculated by the New Zealand Revenue Department on the basis of the amount of benefits paid to employees by the Company. Benefits are enjoyed by employees, but welfare tax employees are not considered at all, and businesses and employers are responsible for calculating and filing them.
New Zealand's FBT was imposed mainly to expand tax programs to prevent businesses from avoiding tax by using welfare payments. Once upon a time, new Zealand did not tax employee benefits if they were provided in a non-cash manner, but employers and employees quickly formed a tacit understanding that employees did not require employers to provide the best wages, but required employers to pay themselves the necessary living expenses in various forms and issue them with "corporate benefits", which amounted to a significant loss of tax revenue for the Government. Based on this, the New Zealand government introduced the FBT system to curb "hidden tax evasion".
Many Chinese are registered in New Zealand small companies, these companies are the standard "one person's company", Owner is both the boss and employees, then if such a company buys a car, and the company owner personally does not have a private car, the New Zealand Internal Revenue Service IRD will be the company car as a "welfare" to calculate and charge a fairly high "welfare tax";
How high is new Zealand's welfare tax FBT? The answer is that it's very high, and usually if you have a professional accountant to account for your company, accountants may use professional time to help you lower the tax rate a little; Welfare tax avoidance" occurs.
However, still can not avoid some rich and atmospheric companies, for employees to "profit" a variety of benefits, to retain high-quality and high-capacity personnel for their own enterprise services. So, if there is an "employee benefit tax", can a company "come back" some of the GST, or use the GST to offset a portion of the tax payable?
If a company's property is used for private use, then it is up to the situation to adjust the GST contribution. For example, the company bought a yacht, which is leased to make a profit for the company 60 percent of the time, and the company owner himself took his family fishing vacation. Then, 60% of the yacht price and operating expenses part can apply to the Tax Office for a GST refund, while the remaining 40% can not get GST back.
"If a business had "benefits" such as small low-interest loans to employees, overseas travel and life insurance, which were themselves GST exempt items, there would be no GST claim this time around.
If you're Sole Trader, Partner, Trust Member, or Associate Person, then most of the time "personal is using the company", this time you need to make additional special adjustments in the FBT project to match the GST Claim that needs to be made.
In general, FBT is a more sensitive and complex tax component, and the mixing of GST and "public-private" issues often requires more care. And IRD also likes to "care" these "public property private use" of the problem, in the above tax chase is very tight, if you do not understand the content of this aspect, either try not to appear FBT problems, or ask a professional accountant to help you with tax returns.
Employee benefit tax, known in English as Fringe Benefit Tax, or FBT, is a tax calculated by the New Zealand Revenue Department on the basis of the amount of benefits paid to employees by the Company. Benefits are enjoyed by employees, but welfare tax employees are not considered at all, and businesses and employers are responsible for calculating and filing them.
New Zealand's FBT was imposed mainly to expand tax programs to prevent businesses from avoiding tax by using welfare payments. Once upon a time, new Zealand did not tax employee benefits if they were provided in a non-cash manner, but employers and employees quickly formed a tacit understanding that employees did not require employers to provide the best wages, but required employers to pay themselves the necessary living expenses in various forms and issue them with "corporate benefits", which amounted to a significant loss of tax revenue for the Government. Based on this, the New Zealand government introduced the FBT system to curb "hidden tax evasion".
Many Chinese are registered in New Zealand small companies, these companies are the standard "one person's company", Owner is both the boss and employees, then if such a company buys a car, and the company owner personally does not have a private car, the New Zealand Internal Revenue Service IRD will be the company car as a "welfare" to calculate and charge a fairly high "welfare tax";
How high is new Zealand's welfare tax FBT? The answer is that it's very high, and usually if you have a professional accountant to account for your company, accountants may use professional time to help you lower the tax rate a little; Welfare tax avoidance" occurs.
