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Inland Revenue

Tax Policy

Announcements
PUBLISHED 21 February 2005

FBT rate for low-interest loans up

The interest rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise from 8.52% to 8.76% from 1 April 2005. The new rate was set by Order in Council today. For more information see the government's media statement.


Hon Dr Michael Cullen
Minister of Revenue

MEDIA STATEMENT

FBT rate for low-interest loans up

The prescribed rate use to calculate fringe benefit tax on low-interest, employment-related loans will rise from 8.52 per cent to 8.76 per cent from 1 April 2005, Revenue Minister Michael Cullen announced today.

The rate is reviewed regularly to align it with the results of the Reserve Bank's survey of first mortgage rates. It was last changed with effect from 1 January 2005.

The new rate was set by Order in Council today.

Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail [email protected]