Tax-exempt body entertainment fringe benefits

This information forms Chapter 15 of Fringe benefits tax - a guide for employers. Remember, a fringe benefit may be provided by another person on behalf of an employer. It may also be provided to another person on behalf of an employee; for example, a relative.

15.1 What is a tax-exempt body entertainment fringe benefit?

A tax-exempt body entertainment fringe benefit may arise from entertainment expenses incurred by an employer who:

• is wholly or partially exempt from income tax, or
• does not derive assessable income from the activities to which the entertainment relates.

If your entity is a charity, you must be endorsed in order to be income tax-exempt.

For more on endorsement, refer to Non-profit organisations and fringe benefits tax.