FIRSTMATE BLOG: CAPTAINS LOG
Gift vouchers given to employees as Christmas bonuses21.11.2013
Question
An employer company decides to give gift vouchers of $150 to its employees as a Christmas bonus. Is any FBT payable in relation to these gift vouchers?
Answer
Fringe Benefit Tax (FBT) would usually apply to gift vouchers than cannot be exchanged for cash. Depending on whether the employer provides any other fringe benefits to staff during the year and depending on whether FBT is paid annually or quarterly, the gift vouchers may not be subject to FBT.
The benefit will be an unclassified fringe benefit and will therefore not be subject to FBT if the exemption rules apply, namely, no FBT is payable if:
– The aggregate taxable value of unclassified benefits provided to each employee does not exceed $300 per quarter for employers paying FBT on a quarterly basis (or $1,200 per employee per annum for employers that pay FBT on an annual or income-year basis);
– The total taxable value for the past four quarters of all unclassified benefits provided by an employer to all its employees does not exceed $22,500 for employers paying FBT on a quarterly basis (or $22,500 for all employees per annum for employers that pay FBT on an annual or income-year basis).
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