Tax

Tax on Fees Paid to Board Members

Inland Revenue (IR) has recently released information setting out the tax rules which apply on fees paid to board members. The way taxation applies to any fees paid to members will depend on the personal circumstances of the individual member and the terms of their contract/appointment. Employees Many SME companies have employees sitting on the …

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New Resident Withholding Tax Rate for Higher Income Earners

Inland Revenue have announced that a new resident withholding tax rate for high income earners is now available. If you are New Zealand resident, income that you earn from interest and dividends has tax deducted “at source”. This means that it should be tax free when it is paid to you but only if you …

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Purchase Price Allocation Rules

When you purchase a business, thought needs to be given to how you will value assets like stock, property and financial arrangements. Inland Revenue has brought in Purchase Price Allocation Rules to standardise the process. The rules apply from 1 July 2021 and will ensure that both the purchaser and the vendor account for valuations …

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Coronavirus – tax loss scheme

Coronavirus – Tax Loss Scheme The government has announced details on the changes to tax losses as part of a suite of measures to assist with the economic downturn caused by the COVID-19 lockdown. The scheme will allow entities to offset a loss in a particular tax year against a profit in a previous year. …

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Coronavirus Tax Changes

Coronavirus Tax Changes The coronavirus pandemic has seen some significant tax changes announced. Media attention seems to have focused on the announcement on wage and salary subsidies but the government has also announced some important changes for the 2021 income year (1 April 2020 – 31 March 2021). Depreciation on Low Value Assets For nearly …

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Accounting Income Method – a new way of paying provisional tax

Accounting Income Method From 1 April, 2018, there is a new way of paying provisional tax called the Accounting Income Method (AIM). Before we look at the new method, it’s worthwhile looking at the existing system. Up until now, there have been two main methods of working out your provisional tax: Standard Method –¬†this simply …

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Tax Residency and a permanent place of abode

The Inland Revenue Department have recently clarified their view on tax residency in New Zealand for natural persons. Some of our more frequent blog readers might remember that we alerted you to a case that was proceeding through the courts regarding tax residency. This particular case involved a New Zealander who had lived abroad for …

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Personal tax deductions – are there any left?

Personal tax deductions – are there any left? If you are on a PAYE salary, the number of expenses you can claim is rather limited but there are still some that are worthwhile. Accounting fees The fees charged for preparing your personal return are fully deductible. Donations A donation to a charity is deductible. You …

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