Does the $30,000 threshold for FBT apply to each employee?
As a public benevolent institution (PBI) or health promotion charity (HPC), you have a capping threshold placed on the amount of FBT exempt benefits you may provide to employees. You are liable to pay FBT if the total grossed-up value of certain benefits you provide to an individual employee during the FBT year is more than $30,000. The $30,000 capping threshold applies even if the PBI or HPC did not employ the employee for the full FBT year. For example, if you employed the employee between October and March and the total grossed-up value of benefits provided was $25,000, FBT will not be payable. Where your PBI or HPC provides employees with benefits above the $30,000 threshold, you are subject to FBT on the aggregate non-exempt amount.
Related Questions
- Whether FBT is payable by a foreign company even if its employee (s) are not taxable in terms of the Article relating to dependent personal services in any treaty?
- If an eligible employee is part-time, how will the $100,000 threshold be computed for determining eligibility?
- What is the threshold for FBT exemption?
