Further rise in FBT rate for low-interest loans
The prescribed rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise to 10.37%, up from the 9.79% rate announced for the previous quarter, Revenue Minister Peter Dunne announced today.
The revised rate will apply from 1 October 2007 and follows the latest Reserve Bank survey of first mortgage interest rates.
The rate is reviewed regularly to align it with the results of the Reserve Bank’s survey of first mortgage interest rates and was last adjusted with effect from 1 July 2007.
The new rate was set by Order in Council last week.
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