Deemed Interest - FBT

[#1]

Hi , just wondering whether deemed interest needs to be calculated under operating cost method even if the car has been purchased in cash and not financed ?

Thank you 

[#2 · Accepted solution]

Deemed interest needs to be included, regardless of whether or not the car is financed.  The calculation is to reflect the value to the employee, the employer financing the purchase does not affect that value.

[#3]

Hi @Glenn4802 , Thanks a lot