What is Fringe Benefit Tax?

This tax is imposed on the fringe benefits provided by the company to their employee. Here fringe benefit means non wage compensation which are given to employees by their company. This duty was initiated from 1 April 2005 under the Finance Act 1995.

Comments

  • Anonymous

    fringe benefit means non wage compensation which are given to employees by their company. Please illustrate which wages are included in this??? and how the the tax counted???

  • AJAY JAISWAL

    Fringe benefits are compensations made to an employee beyond the regular benefit of being paid for their work. Some fringe benefits are fairly standard, such as offering a few days of sick time or paid vacation time. Others can be significantly greater, and more rare. Key executives in large companies might also enjoy fringe benefits like use of time-share condominiums, paid continuing education, use of a company jet, use of a company credit card, discounted or free health club memberships, and a significant amount of paid vacation.