Tax Facts

Tax Information

There are changes to tax and employment law as from April 1, 2011.

Here are some important tax facts you need to be aware of

ACC Premiums

Tax Information – ACC Premiums Employer invoicing by ACC takes place in July 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 …

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Depreciation

Tax Information – Depreciation Allowances 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 …

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Entertainment

Tax Information – Entertainment 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 …

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Fringe Benefit Tax

Tax Information – Fringe Benefit Tax 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 …

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Gift Duty

Tax Information – Gift Duty The government abolished gift duty for dispositions of property made on or after 1 October 2011. This means that: Gift duty will not be payable for dispositions of property made on or after 1 October 2011 Gift statements will not need to be filed for dispositions of property made on …

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Goods and Services Tax

Tax Information – Goods and Services Tax 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’. These …

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GST and E-Commerce

Tax Information – GST and E-Commerce Sale of Physical Goods via the Internet If 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 …

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KiwiSaver

Tax Information – KiwiSaver All New Zealand residents and people entitled to live here permanently up to the age of 65 are eligible for Kiwi Saver. All new eligible employees must be automatically enrolled in Kiwi Saver. However there are some employees who are exempt from automatic enrolment. These include: Those under 18 years of …

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PAYE on Salaries and Wages

Tax Information – PAYE on Salaries and Wages 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. …

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Provisional Tax

Tax Information – Provisional Tax 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 …

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Resident Withholding Tax (RWT)

Tax Information – Resident Withholding Tax (RWT) Resident Withholding Tax (RWT) is a tax deducted on interest earned from investments and bank accounts. The investment organization 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 …

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Tax Credits (formerly Rebates)

Tax Information – Tax Credits (formerly Rebates) 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 …

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Tax Payer Penalties

Tax Information – Tax Payer Penalties 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: A shortfall penalty where the …

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