Jo Jo
23rd January 2009, 11:11 PM
Do you get taxed on company cars in NZ? If so, can anyone point me in the direction of any further info?
Cheers.
Cheers.
Company cars
pleccy2000
24th January 2009, 08:16 AM
I am not sure - I get $15k car allowance and that is taxed.
James 1077
24th January 2009, 12:38 PM
New Zealand doesn't have a "Benefits in kind" regime like they do in the UK. Instead the company pays "Fringe Benefits Tax" on any non-cash benefits that they provide to you.
So basically the company pays the tax on your behalf so you don't have to pay any tax on the car.
Most company cars also come with free fuel, servicing etc - but this does depend on the employer (and sometimes the free fuel is only if the car is only being used for business).
As mentioned in the post above if you get a car allowance in cash then this is treated as normal income for you and so you have to pay tax on it.
So basically the company pays the tax on your behalf so you don't have to pay any tax on the car.
Most company cars also come with free fuel, servicing etc - but this does depend on the employer (and sometimes the free fuel is only if the car is only being used for business).
As mentioned in the post above if you get a car allowance in cash then this is treated as normal income for you and so you have to pay tax on it.
Jo Jo
24th January 2009, 05:21 PM
That's great info - thank you.
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