New rate applies for the quarter beginning Apr. 1, 2025 and for subsequent quarters.
Document dated Apr. 7, 2025, received from NZ GVT Apr. 9, summarized on Apr. 14.
On Mar. 30, NZ Tax issued webinar on tax changes coming in 2022.
NZ Tax published its latest webinar relating to policy and remedial changes coming in 2022, which was aimed mainly at businesses and specifically those with employees.
Follows NZ PRL Sep. 2021 introduced bill on annual rates for 2021-22, see #115235.
UOMI
The relief of use of money interest (UOMI) is being extended so NZ Tax will be able to remit penalties and interest for tax payments that were due up until Apr. 8, 2024.
This is for those unable to pay their tax on time because they have been significantly adversely impacted by Covid-19, or who become significantly adversely impacted.
Safe Harbor
The requirement for customers to pay provisional tax installments in full and on time will be removed for customers using the safe harbor option, with UOMI rules applied.
Employment Information
Firms will no longer be able to amend employment information, the IR348 returns in myIR or gateway filing, if it has been 4 years since a last return was filed with NZ Tax.
Firms can still request changes outside the 4 years to be made for student loan and/or child support deductions using the employment information amendments form, IR344.
Rate Changes
From 2023, provisional tax early payment discount (EPD) reduces from 6.7% to 2%.
The employer superannuation contribution tax (ESCT) rate on contributions required from firms for all of its past employees will be changing, from 39% to 33% per year.
The ACC earners levy, including goods and services tax (GST) will increase to $1.46.
Also, the levy paid will change to a minimum of $42,465 and maximum of $136,544.
New student loan changes will apply for the period ending Mar. 31, 2023 and the student loan repayment threshold will the be increasing from $20,280 to $21,268.
Residential Property
The ability to claim interest on loans for residential property as an expense will be phased out, but interest deductions may be allowed if home is used for a business.
Other Changes
A new penalty regime will be introduced to prohibit sale, possession, or use of sales suppression software, which alters sales data in EFTPOS systems to allow tax evasion.
Also, the loss carry back key point will now be removed from all the 2022 income tax returns because the scheme was only available for both the 2020 and 2021 tax years.
KiwiSaver
KiwiSaver members who make contributions through deductions from salaries and wages will have more ways to request changes to their KiwiSaver contribution rate.
Also, if an employee opts out of KiwiSaver or has an invalid/incorrect enrollment, any employer contributions made will be refunded or offset against amounts outstanding.
Fringe Benefits Tax (FBT)
It is proposed that a new FBT calculation, called the pooled alternate rate option, be introduced, subject to flat rate of 49.25% or 63.93%, depending on employee’s pay.
In addition to standard all-inclusive pay determination, a safe-harbor rule has been introduced for easier determination of when employees do qualify for the 49.25% rate.
There will also be clarification of the categories of unclassified benefits that employers may be liable for when providing any fringe benefits for any of their own employees.
This includes clarification on the liability of unclassified benefits provided by associates.
In Dec. 2022, NZ Tax reported it issued an alert re sales suppression, see #157064.
The purpose of the principal regulations is to increase the rate of interest that applies for fringe benefit tax purposes to employment-related loans from 6.71% to 7.89%.
New rate applies for the quarter beginning Apr. 1, 2023, and for subsequent quarters.
Mar. 14, 2023 FBT Interest Rate Increase
On Mar. 14, 2023, NZ Tax issued notification that the prescribed rate used to calculate FBT on low-interest, employment-related loans will increase from 6.71% to 7.89%.
New rate effective Apr. 1, 2023 and is given effect by Mar. 2 regulations noted above.
Document dated Mar. 14, 2023, received from NZ Tax Mar. 21, summarized Mar. 23.
New prescribed rate of 8.41% for calculating fringe benefit tax (FBT) on employer-provided loans applies for quarter beginning Oct. 1, 2023 and subsequent quarters.
In Jun. 2024, NZ Tax simplified requesting an extension of tax deadline, see #216027.
In Feb. 2025, NZ Tax reminded employers re employment information, see #244036.
