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Information Release: Taxation (Annual Rates for 2023–24, Multinational Tax and Remedial Matters) Bill

Source: Inland Revenue Department –

Documents in this information release

  1. CBC-24-SUB-0012 – Paper: Proposed changes to the 39% trustee tax rate – 25 January 2024 
  2. CBC-214-SUB0012 – RIS: 39% trustee rate Changes to the Multinational Tax Bill – 17 January 2024
  3. CBC-24-MIN-0012 – Minute: Proposed changes to the 39% trustee tax rate – 25 January 2024
  4. IR2023/291 – Report: 39% trustee tax rate – recommended changes to the Multinational Tax Bill – 20 December 2023
  5. IR2023/221 – Report: Departmental Report on the Taxation (Annual Rates for 202324, Multinational Tax and Remedial Matters) Bill – 20 December 2023
  6. IR2023/261 – Report: Setting Effective Dates for Global Anti-Base Erosion Tax (“GloBE Rules”) – 20 December 2023
  7. IR2023/178 – Report: Platform Economy: Remedial measures for inclusion in current Tax Bill – 23 June 2023
  8. IR2023/259 – Report: Disposals of trading stock at below market value – 20 December 2023
  9. ECO-24-SUB-0004 – Paper: Disposals of trading stock at below market value – 21 February 2024 
  10. ECO-24-MIN-0004 – Minute: Disposals of trading stock at below market value – 21 February 2024 
  11. IR2023/273 – Report: Interest deductibility phasing options – 30 November 2023
  12. BN2023/284 – Briefing note: Confirmation of fiscal estimate for interest limitation changes – 6 December 2023 
  13. IR2023/279 – Report: Tax policy options for Mini Budget – 5 December 2023 
  14. IR2024/015 – Report: New bright-line test and removing building depreciation – 13 February 2024
  15. IR2024/027 – Report: Restoring interest deductibility for residential property – 1 February 2024
  16. CAB-24-SUB-0054 – Paper: Restoring interest deductibility for residential property – 28 February 2024
  17. ECO-24-MIN-0011 – Minute: Restoring interest deductibility for residential property – 28 February 2024
  18. CAB-24-MIN-0054 – Minute: Restoring interest deductibility for residential property – 4 March 2024
  19. IR2023/296 – Report: Options to regulate and tax online casino gambling – 18 December 2023
  20. IR2024/061 – Report: Further information on online casino gambling – 16 February 2024
  21. IR2024/029 – Report: Online Casino Gaming Duty and Regulation Cabinet paper – 23 February 2024 
  22. CAB-24-SUB-0072 – Paper: Online Casino Gaming Duty and Regulation – 11 March 2024 
  23. ECO-24-MIN-0018 – Minute: Online Casino Gaming Duty and Regulation – 6 March 2024 
  24. CAB-24-MIN-0072 – Minute: Online Casino Gaming Duty and Regulation – 11 March 2024 
  25. IR2024/071 – Report: Platform Economy: Transitional GST rule – 27 February 2024

Additional information

  • The Cabinet paper Proposed changes to the 39% trustee tax rate (CBC-24-MIN-0012) was considered by the Cabinet Business Committee on 25 January 2024 and confirmed by Cabinet on 30 January 2024.
  • The Cabinet paper Disposals of trading stock at below market value (ECO-24-SUB-0004) was considered by the Cabinet Economic Policy Committee on 21 February 2024 and confirmed by Cabinet on 26 February 2024.
  • The Cabinet paper Restoring interest deductibility for residential property (ECO-24-MIN-0011) was considered by the Cabinet Economic Policy Committee on 28 February 2024 and confirmed by Cabinet on 4 March 2024.
  • The Cabinet paper Online Casino Gaming Duty and Regulation Cabinet paper (ECO-24-MIN-0018) was considered by the Cabinet Economic Policy Committee on 6 March 2024 and confirmed by Cabinet on 11 March 2024.
  • The Cabinet paper Fiscal Management: Mini Budget, Budget 2024 and the Fiscal Sustainability Programme (CAB-23-MIN-0490) which was considered by Cabinet on 11 December 2023. This paper will be separately released by The Treasury as part of their mini-budget release, however, some of the key advice reports are included in this release

The following Regulatory Impact Statements are not included in this information release as they are publicly available:

  1. Reducing the bright-line period for taxing residential property, 8 December 2023
  2. Reintroducing interest deductibility on residential investment property, 8 December 2023
  3. Removing building depreciation, 7 December 2023
  4. Disposals of trading stock at below market value, 20 December 2023
  5. Online Casino Taxes, 21 February 2024
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Special Reports on new measures

Source: Inland Revenue Department –

Inland Revenue has produced Special Reports on three of the measures in the newly enacted Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 to provide early guidance.

Trustee tax rate

The trustee tax rate has been aligned with the top personal tax rate of 39%. A $10,000 threshold has been introduced to help prevent the over-taxation of lower-income trusts. 

Special report: 39% Trustee tax rate

Further changes to the rules for the platform economy

In March 2023, new GST rules for marketplace operators involved in the supply of ride-sharing/ride-hailing and delivery services for food and beverages, as well as for marketplace operators and listing intermediaries involved in the supply of accommodation services. Additional changes have been made to those rules to ensure the rules are workable and consistent with the policy intent.

Special report: GST on accommodation and transportation services supplied through online marketplaces 

Offshore gambling duty

The new legislation also introduces a new gaming duty. From 1 July 2024, offshore operators will be required to pay a 12% gaming duty,

Special report: Offshore gambling duty

These will be included in full coverage of the new legislation in an upcoming Tax Information Bulletin.

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Special Report: 39% Trustee Tax Rate

Source: Inland Revenue Department –

The trustee tax rate has been increased from 33% to 39% for the 2024–25 and later income years. This Special Report outlines new rules for trusts:

  • Measures to mitigate over-taxation, including:
  • retaining the 33% rate where trustee income for the income year does not exceed $10,000 (after deductible expenses);
  • targeted rules for deceased estates and trusts settled for disabled people; and
  • exclusions for energy consumer trusts and legacy superannuation funds.
  • A measure to buttress the 39% trustee tax rate by taxing beneficiary income derived by certain close companies at the 39% trustee tax rate.
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LEG-24-SUB-0013: Tax Administration (Reportable Jurisdictions for Application of CRS Standard) Amendment Regulations 2024

Source: Inland Revenue Department –

This information release includes the Cabinet paper plus accompanying papers covering the Tax Administration (Reportable Jurisdictions for Application of CRS Standard) Amendment Regulations 2024.

 

Documents in this information release
  1. LEG-24-SUB-0013 – Cabinet Paper: Order in Council – Tax Administration (Reportable Jurisdictions for Application of CRS Standard) Amendment Regulations 2024 (22 February 2024)
  2. LEG-24-MIN-0013 – Minute: Tax Administration (Reportable Jurisdictions for Application of CRS Standard) Amendment Regulations 2024 (22 February 2024)
  3. CAB-24-MIN-0044 – Report of the Cabinet Legislation Committee:  Period Ended 23 February 2024 (26 February 2024)
Additional information

The Cabinet paper was considered by the Cabinet Legislation Committee on 22 February 2024 and confirmed by Cabinet on 26 February 2024.

One attachment to the Cabinet paper is not included in this information release as it is publicly available:
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Special Report: Offshore Gambling Duty

Source: Inland Revenue Department –

The recently enacted Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Act 2024 introduced a new gaming duty.

This gaming duty applies from 1 July 2024 to online gambling provided by offshore operators to New Zealand residents. The special report provides information on the offshore gambling duty.

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Special report: GST on accommodation and transportation services supplied through online marketplaces

Source: Inland Revenue Department –

In March 2023, legislation containing rules for the platform economy was passed into law. Additional changes have been made to those rules to ensure the rules are workable and consistent with the policy intent. These further changes confirm and clarify the rules as well as introduce:

  • rules to address circumstances when a person, referred to as a “listing intermediary”, is interposed between an underlying supplier of taxable accommodation and the operator of an electronic marketplace
  • adjustment rules for the flat-rate credit that will enable marketplace operators and listing intermediaries to self-correct errors related to the calculation of the flat-rate credit
  • a transitional rule to ensure that marketplace operators and listing intermediaries do not have to account for GST on contracts for taxable accommodation entered into before 1 April 2024, and
  • a range of other minor measures.

These new measures passed into law in March 2024 and this Special Report provides coverage of those changes. This will be included in an upcoming Tax Information Bulletin 

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Amendment Paper No 20

Source: Inland Revenue Department –

An Amendment Paper for the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill has been released by the Minister of Revenue. It contains proposals to: 

  • Restore the ability to claim interest deductions for residential investment properties
  • Repeal the current ten and five-year bright-line tests and replace with a two-year bright-line test
  • Remove the ability to depreciate commercial buildings
  • Improve the tax treatment of the disposal of trading stock at below market value
  • Introduce a new gaming duty Introduce a transitional rule relating to platform economy rules

Amendment Paper No 20

Commentary to the Amendment Paper No 20

Regulatory Impact Statements relating to Amendment Paper No 20

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Commentary to Amendment Paper No 20 to the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill

Source: Inland Revenue Department –

Amendment Paper No 20 contains proposals to:

  • Restore the ability to claim interest deductions for residential investment properties
  • Repeal the current ten and five-year bright-line tests and replace with a  two-year bright-line test
  • Remove the ability to depreciate commercial buildings
  • Improve the tax treatment of the disposal of trading stock at below market value
  • Introduce a new gaming duty
  • Introduce a transitional rule relating to platform economy rules

Amendment Paper No 20

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CBC-23-SUB-0026: Student Loan Scheme (Repayment Threshold for 2024-25 Tax Year and Subsequent Tax Years) Regulations 2023

Source: Inland Revenue Department –

This information release includes the Cabinet paper plus accompanying papers covering the Student Loan Scheme (Repayment Threshold for 2024-25 Tax Year and Subsequent Tax Years) Regulations 2023

Documents in this information release
  1. IR2023-268 – Tax policy report: Student Loan Scheme (Repayment Threshold Regulations 2024-25 (30 November 2023)
  2. BN2023/277 – Briefing Note: Student Loan repayment threshold adjustment – further information (04 December 2023)
  3. CBC-23-SUB-0026 – Cabinet paper: Student Loan Scheme (Repayment Threshold for 2024-25 Tax Year and Subsequent Tax Years) Regulations 2023 (13 December 2023)
  4. CBC-23-MIN-0026 – Minute: Student Loan Scheme (Repayment Threshold for 2024-25 Tax Year and Subsequent Tax Years) Regulations 2023 (13 December 2023)
  5. CBC-23-MIN-0493 – Minute: Report of the Cabinet Business Committee: Period ended 15 December 2023 (15 December 2023)
Additional information

The Cabinet paper was considered and confirmed by the Cabinet Business Committee on 18 December 2023.

One attachment to the Cabinet paper is not included in this information release as it is publicly available:
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CAB-23-SUB-00361: Progressing a Digital Services Tax

Source: Inland Revenue Department –

This information release includes the Cabinet paper plus accompanying papers covering Digital Services Tax (DST). 

Documents in this information release
  1. IR2023/137 – Report: Cabinet paper – Progressing a digital services tax (01 June 2023)
  2. IR2023/215 – Report: Administrative Aspects of a Digital Services tax (18 July 2023)
  3. IR2023/224 – Report: Digital Services Tax: Revised Cabinet paper for discussion (02 August 2023) 
  4. CAB-23-SUB-0361 – Cabinet Paper: Progressing a Digital Services Tax (14 August 2023)
  5. CAB-23-SUB-0361 – Cabinet Paper Minute: Proposed Revenue Initiative (14 August 2023)
Additional information

The Cabinet paper was considered and confirmed by Cabinet on 14 August 2023.