Company Motor Vehicles - Latest FBT Changes

Company Motor Vehicles - Latest FBT Changes

When a Company vehicle is available for private use
it is subject to Fringe Benefit Tax (FBT). FBT is
calculated on 20% of the original cost of the vehicle
with the FBT tax rate generally being 49.25%.

From 1 April 2017 the IRD has modified the rules so that when a close Company purchases a vehicle they have the option to keep a log book and claim vehicle expenses based on an apportionment of business/private use. Certain rules apply here:
• This method can only be used when the only (fringe) benefits supplied by the Company is at maximum 2 vehicles to shareholder-employees. This means that if other fringe benefits are provided to employees or vehicles are provided to non shareholders this method cannot be used.
• The vehicle must be purchased after 1 April 2017 to use the new rules.
• A vehicle log book must be kept for a minimum of 90 days, once every 3 years to determine the business portion of expenses.

Wednesday, 8th November 2017


Back...
 
 
"DB Chartered Accountants through David & his team, are fantastic to deal with for our Company accounting needs.
We have found the support and informed advice from David invaluable for our company in our progress and development.
The staff are always welcoming and responsive and the relationship goes that extra mile beyond the Business – Client relationship which we personally appreciate.
Just a great team to do business with."

 
Trevor DODUNSKI
Managing Director
E.RUYS & CO LTD
 
 
Copyright ©  |  View Desktop Version