Skip to main content

You usually need to pay fringe benefit tax if:

  • you give an employee a loan at less than the prescribed or market rate of interest
  • this loan is not available to the public.

There are some exceptions to this. The following types of loans you do not have to pay FBT for, or they have different rules about when FBT applies:

  • wage advances
  • employee share loans
  • share purchase scheme loans
  • shareholder employee current account debit balances
  • company expense accounts
  • loans to life insurance policy holders.

Record keeping for low-interest loans

Your records for low interest loans must show the:

  • date the loan started
  • name of the employee receiving the loan
  • description of the loan
  • amount of interest charged
  • prescribed or market rate of interest.
Last updated: 17 Jun 2021
Jump back to the top of the page

We've created quick-help sections in other languages to make it easier to find what you need.

You can always get to them by using this language button at the top or bottom of our web pages.

Kua waihangatia e mātou tētahi wāhanga āwhina kia māmā ake ai te rapu i nga mea.

Whakamahi i te pātene reo i tō mātou whārangi paetukutuku.

我们提供了简体中文版本网页内容, 为您快速了解有关信息提供帮助。

只要使用位于网页顶端或底端的语言按键, 您即可以进入这些网页。