What is Fringe Benefits Tax?
Taxable benefits include any non-cash benefits or benefits received in kind that is provided free by the employer to the employee or persons associated with the employee.
The value of non-cash fringe benefits received by an employee from his/her employer is subject to fringe benefits tax. It is a final tax on employers and shall not be recovered from the employee.
FBT is a tax levied at the rate of 20% on the fringe benefit taxable amount (non-cash benefits) of the employer for each quarter, with effect from 1 January 2012.
There are 9 categories of fringe benefits include:
- A debt waiver
- A household personnel
- A housing
- A loan
- A meal or refreshment .
- A motor vehicle
- A private expenditure
- A property
- A residual
Who are regarded as employees for Fringe Benefits Tax purposes?
An employee is defined as “an individual engaged in employment”. Other office holders such as directors, managers and associates (including certain relatives) of the employees are treated as employees for the purpose of the Fringe Benefit Tax.
Exempt Fringe Benefits
The following benefits are exempt from Fringe Benefits Tax:
- The value of which is exempt income of the employee;
- In respect of employment if the employment income arising from the employment is exempt income;
- It is so small as to make accounting for it unreasonable or administratively impracticable;
- A meal or refreshment provided in a canteen, cafeteria or dining room operated by or on behalf of an employer solely for the benefit of employees and which is available to all non-casual employees on equal terms; or
- The provision of accommodation or housing to a non-managerial employee in a remote area if
- The employee’s usual place of employment is in the remote area; and
- It is necessary for the employer to provide the accommodation or housing to the employee in the remote area because—
- The nature of the employer’s business is such that the employee is likely to move frequently from one residential location to another; or
- There is insufficient suitable residential accommodation available in the remote area;
- A fringe benefit provided to an employee of a religious body registered under the Religious Bodies Registration Act (Cap. 68).
Valuation of Fringe Benefits
In general, the value of a benefit should be the fair market value of the benefit at the time it is provided to the employee. The value of a fringe benefit must be reduced by any payment made by the employee for the benefit.
The value of any benefit should be apportioned if the expenditure incurred by an employer is partly for work purposes and partly for the private benefit of an employee.
The tables below highlight how the various categories of fringe benefits are to be valued.
(1) Motor Vehicle Fringe Benefit Valuation
The value of a motor vehicle fringe benefit for a quarter is as follows:
2024 and prior years
| Engine Capacity | Value for each Quarter |
| Under 1,800cc | $656 |
| 1,800cc and <2,000cc | $778 |
| 2,000cc and above | $958 |
| Irrespective of engine capacity, if the cost exceeds $100,000 | $958 plus 2.5% of the excess of the cost over $100,000 |
Effective 01/01/2025 – New Rates will be applicable on Motor Vehicle and Electric Vehicles as follows:
Fringe Benefits Tax – Value per Quarter for Motor Vehicles
| Threshold (engine capacity) | New Rates |
| Less than 1,800cc | $2,000 |
| 1,800cc to 2,000cc | $3,000 |
| Above 2,000cc | $4,000 |
| Irrespective of the engine capacity, if the cost of the vehicle exceeds $100,000 | $5,000 plus 4% of the excess of the cost above $100,000 |
Fringe Benefits Tax Value per Quarter for Electric Vehicles
| Threshold (cost) | New Rates |
| Less than $20,000 | $2,000 |
| $20,000 to $40,000 | $3,000 |
| $40,000 to $60,000 | $4,000 |
| Above $60,000 | $5,000 plus 4% of the excess of the cost above $60,000 |
If a motor vehicle is provided to an employee partly for private use and partly for use in employment, the value of benefit is reduced by 50% of the value of benefit as per values in above table.
Effective 01/01/2026, the FBT value per quarter for electric vehicles is as follows:
| Threshold (engine capacity) | New Rates |
| Less than $50,000 | $1,000 |
| $50,000 to < $75,000 | $1,500 |
| $75,000 to < $100,000 | $2,000 |
| Above $100,000 | $2,500 plus 2% of the access of the cost above |
(2) Housing Fringe Benefit Valuation
| Scenario | Value of Housing Fringe Benefit |
| Employer owns the accommodation or housing. | Fair market rent for the accommodation or housing for the quarter; reduced by any payment made by the employee for the accommodation or housing. |
| Employer rents the accommodation or housing. | Total rent paid by the employer for the accommodation or housing for the quarter. |
NB: The provision of accommodation or housing to an executive or manager of a hotel is a housing benefit regardless of where the hotel is located.
(3) Property Fringe Benefit Valuation
| Scenario | Value of Property Fringe Benefit |
| Transfer of Property If the employer’s business involves the supply of property or services to customers. In any other case. | The normal selling price of the property or services, reduced by any payment made by the employee to the employer for the property or services. The cost to the employer of acquiring the property or services, reduced by any payment made by the employee to the employer for the property or services. |
| Provision of Services Provision of free or subsidized air travel to an employee by an employer that is an airline operator, travel agent, or tour operator. | Forty (40%) of the standard economy fare for the flight, reduced by any payment made by the employee to the employer for the flight. |
Note:
“Services” include the use of property or the making available of any facility, such as a child care or recreational facility (e.g. access to a gymnasium)
(4) Valuation of Other Fringe Benefits
| Benefit Type | Value of Fringe Benefit |
|---|---|
| Debt Waiver Fringe Benefit | Amount of the debt waived by the employer. |
| Household Personnel Fringe Benefit | Total employment income (salaries/wages) paid by the employer to the household personnel such as housekeeper, driver, gardener, security guard etc., reduced by any payment made by the employee for the benefit. |
| Discounted Interest Loan Fringe Benefit Year Rate (%) 2024 6.05% 2023 6.29% 2022 6.69% 2021 6.95% 2020 7.41% 2019 7.19% 2018 7.37% 2017 7.91% 2016 8.11% 2015 7.84% 2014 7.84% 2013 8.04% 2012 8.29% | Is the difference between the interest paid by the employee on the loan for the quarter, if any, and the interest that would have been paid by the employee on the loan for the quarter if the loan had been made at the market lending rate for that quarter. |
| Private Expenditure Fringe Benefit | Payment incurred for the particular private expenditure. (e.g. school fees of the employee’s children, utilities bills, non-work related medical expenses, medical insurance premiums, life insurance premiums) |
| Meal and Refreshment Fringe Benefit | Employer’s cost of providing the meal or refreshment to the employee reduced by any amount paid by the employee for the meal or refreshment. |
| Residual Fringe Benefit | Fair market value of the benefit provided less any payment made by the employee to the employer for the benefit. |
Note:
The insurance premiums will only be treated as fringe benefits if the employee is the beneficiary under the policy.
Employer Obligations
Generally, employers are required to comply with the following:
- Employers are required to register as a Fringe Benefit Taxpayer if they are providing such benefits to their employees.
- Employers are required to keep records to support the computation of Fringe Benefit Tax payable including the valuation of fringe benefits.
- Employers will continue to show the value of benefits provided to employees in their Tax Withholding certificate. This should be clearly declared as non-cash benefits.
Who should account for Fringe Benefit Tax?
- An employer providing non-cash benefits to employees.
- Each trustee of a trust that provides non-cash benefits to employees.
- Each partner in a partnership business that provides non-cash benefits to employees.
Lodging and payments of FBT Return
FBT should be paid at the time of lodging of the quarterly return. The due dates for each quarter are 30 April, 31 July, 31 October and 31 January.
Penalties
Penalties apply for failure to file a Fringe Benefit Tax return or make payment by the due date. In the case of a failure to file a tax return under which tax is payable, the employer is liable for a late lodgement penalty of 20% of the amount of Fringe Benefit Tax outstanding under the return or in any other case.
In the case of a failure to pay tax by the due date, the employer is liable for a late payment penalty of 25% of the amount of unpaid Fringe Benefit Tax.
Additional Information:
All employers are requested to be mindful of the following additional information for compliance purposes.
Fiji nationals employed by Diplomatic and Consular Missions and certain public international organizations that are exempt from tax under a convention or other international agreement will be required to personally account for the tax on those benefits, as is the case with PAYE tax.
Benefits provided to employee form part of their employment income and must be disclosed even if they may not be subject to normal tax.
Employees will not pay tax again on non-cash benefits provided as this is a final tax paid by the employer.
The taxable value of the benefits will not be included in employees’ employment income for the purposes of determining PAYE deductions.
Once a benefit is subject to Fringe Benefit Tax, it is not subject to income tax.
Fringe Benefit Tax paid is an allowable expense/deduction to the employer, as announced in the 2020-2021 National Budget.
Fringe Benefit Tax is a self-assessment tax; therefore the employer’s Fringe Benefit Tax return will also serve as your notice of Fringe Benefit Tax assessment.
Last Updated - February 4, 2026