Dunne: FBT rate for low-interest loans falls
The prescribed rate of interest used to calculate fringe benefit tax on low-interest, employment-related loans is 5.90%, down from the previous rate of 6.24% which applied from the quarter beginning 1 October 2010, Revenue Minister Peter Dunne announced today.
The new rate applies for the quarter beginning 1 April 2011.
The rate is reviewed regularly to align it with the results of the Reserve Bank's survey of variable first mortgage housing rates.
The new rate was set by Order in Council yesterday.
Mark Stewart | Press Secretary | Office of Hon Peter Dunne
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