Fringe Benefit Tax (FBT) Law and Legal Definition
Fringe benefit tax (FBT) means the taxing of fringe benefits that employees receive or enjoy as a result of their employment, in addition to the cash salary or wages that are paid to them. FBT is not applied to all fringe benefits. The main aim behind imposing FBT is to restore equity and fairness to those employees who do not receive the fringe benefits. It also helps the Federal Government to fairly determine taxpayer’s entitlement to government benefits and their liability to government taxes or levies.
