Christmas Gifts And Fringe Benefits Tax
Tue 11th Dec, 2012
Gifts which ARE NOT considered to be entertainment are:
- Christmas hamper, a bottle of whisky, wine, etc.
- Gift vouchers, a bottle of perfume, flowers, a pen set, etc.
Briefly, the general FBT and income tax consequences for these gifts are as follows:
- Gifts to employees and family members — FBT is payable (except where the minor benefit exemption applies) and a tax deduction is allowed.
- Gifts to clients, suppliers, etc — no FBT, and a tax deduction is allowed.
Gifts which ARE considered to be entertainment are:
- Tickets to attend a theatre, live play, sporting event, movie or the like.
- A holiday airline ticket or admission ticket to an amusement centre.
Briefly, the general FBT and income tax consequences for these gifts are as follows:
- Gifts to employees and family members — FBT is payable and a tax deduction is allowed (except where the minor benefit exemption applies).
- Gifts to clients, suppliers, etc — no FBT and no tax deduction.
