Filing FBT with IRD

Filing an FBT return
You will file one of the following kinds of FBT returns:

  • Fringe benefit tax annual return (IR422), which covers the year ended 31 March and is due on 31 May

  • Fringe benefit tax income year return (IR421), for a company with shareholder-employees, which covers the company's accounting year and is due at the same time as the company's due date for paying its end-of-year income tax

  • Fringe benefit tax quarterly return (IR420), for employers who must file an FBT return each quarter. See more on quarterly returns in regard to due dates and which employers are required to file them.

Penalties and interest may apply if you do not file your return by the due date.

Employer Obligations for FBT
As an employer, if you provide fringe benefits (perks) to your employees, or other people associated with your business, you must generally pay fringe benefit tax on the value of these benefits.

If you are liable for fringe benefit tax, you must file regular FBT returns. These returns may be for each quarter, the income year or annual. For any type of FBT return, where fringe benefit tax is not paid by the due date, use-of-money interest is charged.

What Are Your Obligations When Status Change?
In all cases when your employer status changes, you must file FBT returns until you stop providing fringe benefits.

  • If you stop employing and also stop providing fringe benefits, let IRD know. You must file a final return to cover the period up to the date you stopped employing.

  • If you stop employing or discontinue your business but still provide benefits to past employees or shareholder-employees, continue to file FBT returns. For low-interest loans, you must file returns until the total loan is repaid.

When Do These Obligations NOT Apply?
As an employer, you are not liable for filing an FBT return if:

  • You do not provide fringe benefits and
  • You do not intend to provide them.