As promised the new Government has increased the personal tax thresholds which have not been changed for over a decade. With effect from the 31st July those thresholds are as follows: Tax Rate Old Threshold New Threshold 10.5% $14,000 $15,600 17.5% $14,001 – $48,000 $15,601 – $53,500 30% $48,001 – $70,000 $53,501 – $78,000 33%… Continue reading Changes to Personal Income Tax Thresholds
The Government’s Mini Budget contains proposals to reduce the Brightline Test from 10 years to 2. Whilst no legislation has been introduced just yet, the understanding is that the 2-year Brightline Period will apply for land disposed of after 01 July 2024. The Budget also proposes to remove the deduction for commercial property depreciation. These… Continue reading Mini Budget and Taxation of Land
Mum and dad bank is one of the largest residential lending institutions in NZ when it comes to providing and or securing finance for residential property for adult children. We live in a day and age where buying a home has become an unreachable dream for many. Paying a mortgage is challenging in its own… Continue reading Gifts Made To Children
IRD has recently issued an Operational Position OP 23/02 in which it concluded that a person who provides only directorship services in a personal capacity is not eligible to register for GST, even if the value of the director fees exceeds the GST registration threshold of $ 60,000. A Professional Director does not carry-on a… Continue reading Director Fees and GST OP23/02
We are often faced with questions around the choice of FIF calculation method that taxpayers can choose. Whilst it is a common knowledge that Fair Dividend Rate (FDR) or Comparative Value (CV) methods can be used where market value is readily available, there are limitations on the choice of method used. In case of a… Continue reading Foreign Investment Fund (FIF) Investments
As the borders are opening business travel will become more frequent than in recent years. QB22/06 considers deductibility of overseas travel costs. In essence they will be deductible when costs are incurred by the taxpayer and sufficient nexus exists with deriving assessable income or carrying on business for the purpose of deriving assessable income. FBT rate FBT… Continue reading Overseas Travel Expenses
IRD is collecting more and more information in relation to Trusts and use of Trust property by beneficiaries. This information must be disclosed when filing the tax return. Some innocent transactions can have unintended consequences. These can be wide ranging, for example: Deemed Supplies & GST Lots of trusts have baches that are rented as… Continue reading Trust Disclosures and Resulting Surprises
INCORPORATED SOCIETIES: INCORPORATED SOCIETIES – LAW CHANGES The Incorporated Societies Act 2022 (the New Act) received Royal Assent on 5 April 2022 and all incorporated societies, if they wish to retain their status, will need to comply with the New Act by April 2026. Incorporated Societies currently registered under the Incorporated Societies Act 1908, (the Old Act) do… Continue reading Incorporated Societies: Incorporated Societies – Law Changes
The Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Bill (No2) (The Bill) proposes to implement an information reporting and exchange framework developed by OECD. These proposals will affect electronic marketplaces, such as Air BNB, Uber and the likes. GST already applies on “Remote Services (2016) “and “Low Value imported Goods (2019). The… Continue reading Digital Platforms & Platform Economy
August and September have certainly been interesting months in terms of tax developments. In August we have seen the introduction of the Taxation (Annual Rates for 2022-2023, Platform Economy, and Remedial Matters) Bill, which was withdrawn within 24 hours due to the largely unpopular proposal to subject services supplied by managers and investment managers to… Continue reading New Developments
