How to Calculate FBT in Your Taxation Law Assignment?
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Taxation is an integral subject that students have to study while pursuing taxation law at a higher level. The subject consists of calculating various taxes, including income tax, sales tax, service tax, fringe benefits tax, and so on. Students should have a better understanding of calculating each of the taxes properly to accomplish the core objective of studying taxation law. The professors often assign the task of calculating any of the taxes in the assignment. If you have got the task of calculating fringe benefit tax (FBT) in the university assignment, instead of availing of taxation law assignment help, you can consider this article. It highlights four simple and easy steps that will help you calculate fringe benefit tax, i.e., FBT in no time. But, before knowing the steps to calculate FBT, you must know what it is all about.
Let’s get started.
What Is FBT?
Fringe benefits tax is a tax in which an employer or a company has to pay a sum of amount as a benefit to his employees. Some benefits are given to employees universally, while others may offer the benefits with a proper calculation quarter by quarter or annually based on the company's performance.
Steps to Calculate FBT
Step 1:
Work out the taxable amount of each fringe benefit that an employer provides to each of his employees. The guidelines for calculating the taxable amount of a fringe benefit vary from employee to employee to the type of benefit.
Step 2:
In this step, you need to sum up all the taxable amounts of all the fringe benefits an employer provides for which an employee can claim a GST credit (including excluded fringe benefits).
Step 3:
After summing up all the taxable amounts, you need to multiply the total taxable amount to claim the right sum of GST and gross-up the yearly benefits that an employee can generate based on his potential.
Step 4:
Now, you need to add all the remaining amount of Final Tax Payable to the government that an organization has to pay. It automatically cut the benefits from employee accounts as well. After the final deduction, the employee gets the amount to take home as a benefit in the form of a fringe benefits tax.
These are a few steps that you need to consider to calculate the fringe benefits tax in your taxation law assignment. In case you get stuck at any of the steps mentioned above, don’t hesitate and reach an authentic assignment help provider. It will be a great move to draft the best taxation law assignment and get the grades you deserve.
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