Fringe benefit tax (FBT) remains a significant cost for automotive retailers, and as a result of amendments to the statutory formula method calculations for motor vehicles, this cost is likely to increase.
Moore Stephens accountants and specialist advisors have been helping clients reduce their FBT liability while maintaining an efficient and practical service.
According to Moore Stephens, an average automotive retailer can expect to incur an FBT liability of 8% to 10% of net profit before tax, based on a benchmark net profit to sales percentage of 2.5%.
It is therefore an expense that justifies a detailed review.
The 2013 FBT for automotive retailers bulletin can be downloaded HERE.
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