In 2021, Inland Revenue increased the top tax rate to 39%. That rate is higher than both the 28% tax rate for companies and the 33% tax rate for trusts. The new tax rate concerns Inland Revenue, because it doesn’t want people to use companies and trusts to avoid paying tax at the highest rate. …
Inland Revenue to clamp down on top tax rate avoidance Read More »
The season of giving is on us. While the fun part is thinking about parties and presents, take a moment to remind yourself about the tax rules. If your Christmas giving includes gifts to clients, remember that some gifts will be fully deductible while others will be only 50% deductible. The rule of thumb with …
Around one in five Kiwis is either invested in cryptocurrency or plans to invest, according to a survey by the Financial Services Council. With so many of us jumping into cryptoassets, it’s helpful to understand what our tax obligations are. Last year Inland Revenue updated its guidance on how these assets are taxed; the IR treats …
Working for Families tax credits are available to families with dependent children aged 18 years or younger. These are refundable, meaning that if the credits exceed the person’s income tax liability they are able to be refunded to the taxpayer. The Working for Families tax credits are made up of the following: family tax credit …
Taxpayers who do not meet their tax obligations may face penalty or interest charges. To avoid such charges, you should pay the full amount of tax you owe by the due date. The main kinds of charges for failing to meet tax obligations are: Interest on the amount of tax you owe if you have underpaid …
Tax credits can be claimed by individuals (not companies, trusts or partnerships) who: Earned taxable income during the period being claimed for; and Were in New Zealand at any time during the tax year (including non-residents) You may qualify for a tax credit for: Donations made of $5 or more to an approved charity Donations …
Resident Withholding Tax (RWT) is a tax deducted on interest earned from investments and bank accounts. The investment organisation or bank deducts this tax when they credit interest to you. Companies may also deduct withholding tax from dividends paid to shareholders. If you receive interest as income you need to: Provide the interest payer with …
Provisional Tax is not a separate tax but a way of paying your income tax as the income is received through the year. You pay instalments of income tax during the year, based on what you expect your tax bill to be. The amount of provisional tax you pay is then deducted from your tax bill …
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 …