At this time of year business’ often want to reward employees and customers with Christmas gifts.
Generally the FBT and income tax consequences for these gifts are as follows:
1. gifts to employees and family members – are liable to FBT (except where
the ‘less than $300’ minor benefit exemption applies) and tax deductible; and
2. gifts to clients, suppliers, etc. – are not liable to FBT and are tax deductible.
For more information on FBT exemptions for minor fringe benefits please see the ATO link below:
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.
We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.