If we have a company credit card with a rewards program and the points are used to obtain gift cards (to be used as gifts, incentives for staff and customers) are there tax implications to the business or to the individual staff members?
Hi @Msmith2316,
Yes, using your company credit card reward points to buy gift cards may have tax implications for the business. If they are given to employees, they could be a fringe benefit. This means the business may owe Fringe Benefits Tax (FBT).
The minor benefits exemption may apply, if the gift cards are under $300 and given infrequently. Check out the exemption info on our website to see if you are eligible.
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