Taxation – Excluded income

Excluded income is income that isn’t included from income tax because they are taxed under some other ways like GST and FBT.

A fringe benefit represents the benefit provided by an employer to an employee. The fringe benefit is the exclude income for employee. The employer pays tax on this income as fringe benefit tax (FBT).

The Examples of fringe benefit are as follows:

  • The private use of a motor vehicle (CX6-8)
  • Subsidised transport in course of employer’s business (CX9)
  • Employment-related loans and service for Member of Parliament (CX10-12)
  • Contribution to superannuation schemes and to sick, accident, or death benefit funds or to funeral trusts or life or health insurance (CX13-16)
  • Benefit provided to employees who are shareholders or investors or associates of both employees and shareholders (CX17-18)

The other examples of exclude income are as follows:

  • Government grants to business in relation to expenditure incurred (CX47). For example: A new start grant for the animal husbandry business.
  • A tax credit derived from R&D (CX48D).
  • Employer’s superannuation contribution. (CX49)
  • Kiwi saver tax credits (CX50)
  • Distributions to investors by listed PIEs (CX56C)

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