Pay As You Earn (PAYE) is the basic tax taken out of your employees’ salary or wages. The amount of PAYE you deduct depends on each employee’s tax code. PAYE employees must complete a Tax code declaration (IR 330) as soon as they start working for you. If an employee fails to complete the tax code declaration, you …
All New Zealand residents and people entitled to live here permanently up to the age of 65 are eligible for KiwiSaver. All new eligible employees must be automatically enrolled in KiwiSaver. However there are some employees who are exempt from automatic enrolment. These include: Those under 18 years of age Casual agricultural workers or Election …
Sale of Physical Goods via the InternetIf a GST-registered person sells goods via the internet and the goods are physically supplied to a customer in New Zealand, GST is chargeable at 15%. If goods are sold via the internet and physically supplied to customers overseas the sales can be zero-rated for GST purposes. It is …
A gift is something given when: Nothing is received in return; or Something is received in return, but its value is less than the value of the property given. If something of lesser value is given in return for a gift, the value of the gift is the difference between the two values. In the context of …
Fringe Benefit Tax (FBT) is a tax on benefits that employees receive as a result of their employment, including those benefits provided through someone other than an employer. The four main groups of fringe benefits are: Motor vehicles (refer to the IRD website for more information on how to calculate) Low-interest loans other than low-interest loans provided …
Entertainment expenditure is limited to a 50% deduction if it falls within the following: Corporate Boxes Holiday Accommodation Pleasure Craft Food & Beverages consumed at any of the above or in other specific circumstances, for example: incidentally at any of the three types of entertainment above, eg, alcohol and food provided in a corporate box …
Depreciation allows for the wear and tear on a fixed asset and must be deducted from your income. Generally you must claim depreciation on fixed assets used in your business that have a lifespan of more than 12 months. However in special circumstances you can elect not to depreciate an asset by applying to the IRD. Not all …
Employer invoicing by ACC takes place from June each year and is based on employee earnings for the year ended 31 March. Your ACC Premium consists of: ACC Workplace Cover Levy – your classification unit rate x each $100 of liable earnings. Residual Claims Levy – your residual claims levy rate x each $100 of liable earnings. …
GST is a tax on the supply of goods and services in New Zealand by a registered person on any taxable activity they carry out. The rate for GST is 15% although it can be zero-rated for exports. Certain supplies of goods and services are ‘exempt supplies’ and exempt from GST. These include: Certain financial …