At last some good news out of Inland Revenue.
Fringe Benefit Tax (FBT)
The FBT rate for low-interest loans will fall from 8.05% to 6.41% from 1 July 2009.
This has come about due to the continuing effort to try and align the rate with the variable first mortgage housing rate. Bluntly it was not fair to have the FBT rate above that being charged by the Banks.
Use of Money Interest (UOMI)
Use-of-money interest rates charged by the Inland Revenue on unpaid tax have been lowered from 9.73% to 8.91%. The interest rate paid on overpayments of tax paid reduce from 4.23% to 1.82%. Regretfully, there still remains a large gap between the two.
Please contact us if you would like help to understand how these changes affect you personally and your business - if applicable.