For appreciate and encourage your employees, Christmas is the most suitable time. Christmas brings lots of happiness and enthusiasm and gives new hope to everyone to defeat the challenges and get success in an upcoming new year. As a business owner, you have also many dreams to grow your business and achieve your desire goals. You can grab the opportunity this Christmas by offering party and gifts and get the benefit of the tax with the help of expert Tax Agent in West. In order to understand the implication of FBT (fringe benefits tax), you should hire an expert Accountant in Melbourne who can guide you precisely to get maximum tax advantage this Christmas. You should hire an SMSF Accountant before arranging a Christmas party for your employees.
Know About Fringe Benefits Tax (FBT) and How you Can tax Benefits?
For your business, consulting an experience and reliable company for all your Tax Planning and accountants services in West will give you beneficial guidance for better planning your Christmas party.
-FBT is applicable to an employer who gives their employees some benefits such as gifts, free travel, food or drinks but not in the form of cash. This benefit may be additional or part of the employees’ wages package or salary. This tax is considered as a tax, if an employer pays for particular benefits which they give to their employees or other associate or family of employees.
– Hence, the best way to celebrate Christmas with your staff by presenting them gift that fall under the non-entertainment type gifts which cost below $300/per employee (GST inclusive) and thus, you need not to pay any FBT tax as it is fully tax deductible. You should also remember that this rule is not applicable to gifts given to partners or sole proprietors in a partnership business as they do not come under the employee’s category.
– Also need to careful that the value must not exceed $2000 in an FBT year for the value of fringe benefits. It is advisable to track the record of gifts and parties you provide to your employees. By arranging a party at your premises, you will have property benefits exemptions.
– If you give your employees’ gifts which are under non-entertainments gift category of cost $300 or exceed that inclusive of GST, you can claim for GST credit and tax deduction. Although, you need to pay FBT on the gross value.