27 November 2015
Lower rate for calculating FBT on low-interest loans
Revenue Minister Todd McClay today announced that the new prescribed interest rate used to calculate fringe benefit tax on low-interest loans provided by employers to their employees will be 5.99%.
The new, lower rate will apply for the quarter beginning on 1 October 2015 and for subsequent quarters. The previous rate was 6.22%.
The FBT rate on employer-provided low-interest loans is reviewed regularly to align it with the results of the Reserve Bank’s survey of variable first mortgage housing rates to ensure it is in line with market interest rates.
The new rate was set by Order in Council on 23 November 2015.
Media contact: Lesley Hamilton 027 490 1345