Fringe Benefits Tax

Fringe Benefits Tax (FBT) is a tax paid by employers on certain benefits provided to employees in addition to their regular salary or wages. These benefits, called fringe benefits, include things like company cars, private health insurance, or subsidized housing. The purpose of FBT is to ensure that the value of these non-cash perks is taxed fairly, similar to other income. Employers usually pay this tax directly to the government, and the cost may sometimes be passed on to employees or factored into overall compensation packages.