Work out New Zealand fringe benefit tax on a company vehicle, a
low-interest loan, or another benefit.
Use for: 'FBT on a company car', 'how much FBT do I pay', 'fringe benefit
tax calculator', 'is the alternate rate cheaper', 'FBT on a staff loan'.
THE RATE IS THE EASY PART. What goes wrong is the taxable value, because
FBT is charged on a value derived from the asset, not on what the benefit
cost the employer.
For a vehicle the two methods give very different answers on the same car.
Cost price is 5% a quarter of the GST-inclusive price the employer paid and
NEVER FALLS as the car ages. Tax book value is 9% a quarter of the
written-down value, with a floor of $8,333. An older vehicle is usually
cheaper on tax book value; a cheap one can be dearer, because of the floor.
If someone is choosing, run both.
THE DAYS DIVISOR IS ALWAYS 90, under section RD 29(5)(a) of the Income Tax
Act 2007. It is not the number of days in the actual quarter. Do not
"correct" it to 91 or 92.
On the rate, be careful: 63.93% is the single rate, applies to every
employee whatever they earn, and needs no wash-up. 49.25% is lower but
available in quarters one to three ONLY, and using it obliges a quarter
four wash-up that can claw the saving back. NEVER present the alternate
rate as simply cheaper. quarter_four_washup_required says so for you.
annual_fbt is the quarter times four, which holds only if the benefit is
unchanged all year. A car bought mid-year is not.
Args:
benefit_type: 'vehicle', 'loan' or 'other'.
rate_method: 'single' (63.93%) or 'alternate' (49.25%).
vehicle_value: Vehicle only. GST-inclusive cost price or tax book value.
value_method: 'cost_price' or 'tax_book_value'.
days_available: Vehicle only. Days available for private use, capped at 90.
employee_contribution: Vehicle only. What the employee paid this quarter.
loan_balance: Loan only. Average balance for the quarter.
prescribed_rate_pct: Loan only. IRD prescribed rate, as a percentage.
actual_rate_pct: Loan only. Rate actually charged, as a percentage.
other_quarterly_value: Other benefits only. Quarterly taxable value.
Returns:
Quarterly taxable value, the rate applied, quarterly and annual FBT,
whether a quarter four wash-up is required, and the working.
