Section RD 29 — Income Tax Act 2007: Private use of motor vehicle: formulas

RD 29 Private use of motor vehicle: formulas What this section does (1) This section sets out the formulas for calculating the value of the benefit that an employer provides to an employee by making a motor vehicle available for their private use. Quarterly payment (2) If FBT is paid quarterly, the value of the benefit is calculated using the formula— days × schedule 5 amount 90. Annual payment (3) If FBT is paid on an annual basis, the value of the benefit is the total of the amounts calculated under subsection (2) for the 4 quarters in the applicable tax year. Payment by income year (4) If FBT is paid on an income year basis, the value of the benefit is calculated using the formula— days × schedule 5 amount 365. Definition of items in formulas (5) In the formula,— (a) in subsection (2), days refers to the number of days in the quarter on which the vehicle is made available for private use, reduced by the number of days on which the vehicle was a work-related vehicle, or 90, whichever is less: (b) in subsection (4), days refers to the number of days in the income year on which the vehicle is made available for private use, reduced by the number of days on which the vehicle was a work-related vehicle: (c) in subsections (2) and (4), schedule 5 amount refers to the amount calculated under schedule 5 (Fringe benefit values for motor vehicles) as the value of the benefit that would have been received for unlimited private use of the vehicle in that quarter or income year, as applicable. Test period (6) To calculate the value of the benefit, an employer may choose to use a test period under section RD 31 to establish private use. Defined in this Act: amount , employee , employer , FBT , income year , motor vehicle , private use , quarter , tax year , work-related vehicle , Compare: 2004 No 35 s ND 1A(2)–(6)