The IRD are continuing to keep us up to date with any new tax changes and reminders.  Listed below is a brief update on what’s coming up:- 

  • Investment income: From 1 April 2020, the IRD is making changes that will affect investment income payers and recipients.  Investment income includes interest, dividends, PIE income, taxable Maori authority distributions and royalties paid to non-residents. 
  • Do you know about the brightline property tax rule? Introduced in 2015, the brightline property rule means that people who sell a residential property might need to pay income tax on any gains.  How the rule works depends on when you bought the property. 
  • GST beta content available to review: The IRD are now beta testing GST content on their website.  The content will be available to review and provide feedback on for several more weeks before they publish the content as final.  Take a look and provide feedback.
  • The Accounting income method (AIM) is the provisional tax option that makes paying tax easier. With AIM you will only need to pay provisional tax when you make a profit.  AIM is generally available to businesses with turnover of less than $5 million who use AIM software. 
  • Employer deduction payment: All payments of employer deductions should be coded with the account type “DED”.  Coding the payment correctly means they are not credited to the wrong tax types.
  • Payroll Returns: Please ensure all payroll returns filed electronically or manually have start and cease dates for all new or departing staff.
  • Customers using secondary tax codes: Some employees are using a higher tax rate, such as a secondary tax rate to help offset tax bills based on other income they get. Law changes from 1 April 2019 means this is no longer allowed if the income being taxed at the higher rate is their only source of PAYE income. 

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If you have any questions regarding anything in these articles, please give us a call on 09 636 3332.