Replacing company vehicles from 1st April 2017

Among the changes included in the Taxation (Business Tax, Exchange of Information & Remedial Matters) Bill; there is an amendment that allows close companies that provide motor vehicles to elect to apportion expenditure on motor vehicles the company provides to shareholder-employees between business use and private use as an alternative to paying Fringe Benefit Tax (FBT) on the motor vehicle.


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This change will mean that close companies can treat the expenditure on motor vehicles used for business and private purposes.  Where the provision of a motor vehicle to a shareholder-employee is the only Fringe Benefit, the company provides, electing this new method for accounting for the vehicle will remove the need to register for and file FBT returns.

Please contact your BFA advisor for details