Fringe Benefits Tax (FBT) is a tax that employers pay on non-cash benefits provided to employees, such as a company car, health insurance, or housing allowances.
For instance, if an employer provides a company car to an employee for personal use, the value of that car is subject to FBT calculations.
This tax is separate from income tax and is calculated based on the taxable value of the fringe benefits provided.
Understanding FBT is crucial for employers to ensure compliance with tax regulations and to factor these costs into their overall compensation strategies.
