Category: Inland Revenue Department

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Special reports on recent legislation

The recently enacted Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 contained amendments requiring operators of electronic marketplaces from 1 April 2024, to collect GST on supplies of app-based “listed services” that include the supply of ride-sharing and ride-hailing, delivery services for food and beverages, and accommodation services.

A Special Report explaining the detail of the changes has been prepared ahead of publication in an upcoming Tax Information Bulletin.

This joins special reports prepared for other items in the new legislation:

• Build-to-rent
• Tax relief for North Island flooding events
• GST apportionment and adjustment rules
• Rollover relief – bright-line test and interest limitation

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Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Taxation Principles Reporting Bill introduced

The Minister of Revenue has introduced a Bill containing a set of tax principles.  

The Bill also requires Inland Revenue to report actual outcomes of the tax system in relation to these tax principles.

For more information see:

• Bill commentary, and
• other supporting information.

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Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Tax Bill containing Budget measures introduced

The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill has been introduced into the House. The Bill contains the following measures:

• the annual rates of income tax for the 2023–24 tax year (unchanged)
• implementing the OECD Global Anti-Base Erosion rules
• raising the trustee tax rate from 33% to 39%
• amending the tax treatment of backdated lump sum ACC and MSD payments
• making a three percent KiwiSaver Government contribution to recipients of Paid Parental Leave who make their own contribution of at least 3%.
• tax relief measures for flood-hit businesses in the North Island.

For more information see:

• Bill commentary, and
• other supporting information.

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Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Budget 2023 announced

The Government has today announced its Budget for 2023, which included three Revenue measures:

• Raising the trustee tax rate from 33% to 39% to align it with the top personal income tax rate for the 2024-25 and later income years from 1 April 2024 for most trusts.
• From 1 July 2024, Government will make a three percent KiwiSaver contribution to recipients of Paid Parental Leave who make their own contribution of at least 3%.
• The Budget also reflects an increase in revenue from imposing a tax on some large multinational enterprises operating in New Zealand.

These measures will be included in an upcoming taxation Bill.

For more information, see:

• Minister’s press release, and
• fact sheet on the trustee change.

For full details of all Budget announcements, see the Treasury website.

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Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: R&D Tax Incentive deadline for certain notifications extended

An Order in Council has been made which extends the date by which a business enrolled in the R&D Tax Incentive with a general approval of their activities covering multiple years must notify Inland Revenue that there have been no material changes for their business for the 2021–22 income year. This notification is required to continue to be eligible for the tax credit.

The Tax Administration (Extension of Notification Deadline for Research and Development Tax Credits) Order 2022 extends the deadline for these notifications to 30 April 2023.

The Order came into force on 1 September 2022.

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Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Final long-term insights briefing

The Public Service Act 2020 requires public service agencies to publish a long-term insights briefing at least once every three years. These aim to provide information on medium- and long-term trends, risks and opportunities and provide impartial analysis on possible policy options.

Inland Revenue’s final briefing, Tax, foreign investment and productivity – long-term insights briefing, together with a second document, Tax, foreign investment and productivity – technical appendices to support Inland Revenue’s long-term insights briefing, were presented to the House of Representatives yesterday. The documents examine how New Zealand’s tax settings are likely to affect costs of capital (or hurdle rates of return) for investment into New Zealand and the consequent implications for inbound investment, productivity and economic performance. The technical appendices provide further details on the formal models being used, as well as on the implications of the formal models.

Inland Revenue is also releasing Public submissions and external reviews received on Inland Revenue’s draft long-term insights briefing.

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Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Report on regulatory review of FBT released

The Public Sector Act 2020 places the responsibility for regulatory stewardship on departments. Regulatory stewardship ensures the health of key regulatory systems, ensuring that that policy and operational responsibilities are effective and operating as intended. The purpose of regulatory stewardship reviews is to identify and address any potential regulatory failures and enable proactive adjustment as objectives and needs change over time.

The Fringe benefit tax: regulatory stewardship review, released today, considers the policy and design of fringe benefit tax, the compliance and administrative experience of the tax and whether fringe benefit tax is fit for the future.

The analysis in the report is supported by appendices that provide an overview of the approach to the review, further details about the history and operation of fringe benefit tax and available data used to inform the review’s findings.

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