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NHFA(Initiate)Initiate
25 Feb 2022

Hi


If a company pays income tax return service fee for employee to tax agent, is the fee subject to FBT?

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StephATO(Community Support)Community Support
27 Feb 2022

Hiya @NHFA,


Yes it's an expense fringe benefit. It may qualify for a minor benefits exemption, depending on the amount you are paying.


If it's more than $300 then your FBT liability can be reduced in full or partially if it's an expense the client would get a deduction for if they paid themselves. You can read more in the FBT guide - chapter 9

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Most helpful reply

StephATO(Community Support)Community Support
27 Feb 2022

Hiya @NHFA,


Yes it's an expense fringe benefit. It may qualify for a minor benefits exemption, depending on the amount you are paying.


If it's more than $300 then your FBT liability can be reduced in full or partially if it's an expense the client would get a deduction for if they paid themselves. You can read more in the FBT guide - chapter 9

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