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  • Expense payment fringe benefits

    An employer may provide an expense payment fringe benefit if an employee incurs expenses and the employer either:

    • reimburses them for the expenses, or
    • pays a third party for the expenses.

    The expenses can be business or private expenses or a combination of both, but they need to be incurred by the employee.

    If the employer incurs the expense, for example through a corporate credit card, they won't have provided an expense payment fringe benefit. However, depending on what is paid for, a property, residual, meal entertainment or tax-exempt body entertainment fringe benefit could arise.

    See also:

    Last modified: 25 Aug 2020QC 43858