We aim to keep you up to date with news affecting you and your business. Check back here often for the latest.
18 March 2013 - Car Park Tax U-Turn
The Government has announced that it will not go ahead with its plans to tax employee car parks. According to the Finance Minister, Bill English, the cost of compliance compared with the likely return made it not worth pursuing.
The Government has also scrapped the idea of introducing tax on the use of cell phones and tablets used by employees outside of company hours.
The Government has announced changes as part of the 2012 Budget. From 1 April 2013 there are changes to:
- Tax Credits for Children & Individuals - Childcare and housekeeper tax credit and tax credit for income under $9,880 can no longer be claimed for 2012-2013 and future tax years.
- Student Loan - From 1 April 2013 the rate for standard student loan repayments increases from 10% to 12%. Employers need to ensure that they are using the correct tax code when making student loan deductions. Refer to the Tax Code Declaration (IR330)
http://taxpolicy.ird.govt.nz/news/2012-07-23-changes-student-loan-scheme
http://www.ird.govt.nz/resources/d/d/dd4499004bbe578db052f0bc87554a30/ir330.pdf
- Kiwisaver - From 1 April 2013 the minimum contribution rate for employers and employees will increase from 2% to 3% of gross salary or wages. Employees already contributing 4% or 8% will not be affected.
4 February 2013 - ACC rates for 2014 tax year
The ACC levies have been set by Cabinet for the 2013-2014 tax years. These levy rates will be formalised when they're passed into Regulation. There is no change in the ACC levy rate for the 2014 tax year. The earners' levy is set at $1.70 (GST inclusive).
The minimum liable earnings for self-employed workers increases from $27,040 to $28,080. The maximum liable earnings will increase for:
- self-employed people under the Work and Earners' Accounts from $111,669 to $113,167
- employees, private domestic workers and earners under the Work Account and the Earners' Account from $113,768 to $116,089
- employees and private domestic workers for calculating the residual portion of the Work Account from $111,669 to $113,167.
For more information:
http://www.ird.govt.nz/technical-tax/legislation/2012/2012-88/2012-88-GST/2012-88-liquidators-and-receivers/
17 January 2013 - Receivers and Liquidators can no longer change GST accounting basis
An amendment to the Goods and Services Tax Act 1985 stops any business in liquidation or receivership from requesting their GST accounting basis to be changed from payments to invoice. From 2 November 2012 a liquidator, receiver or administrator of a GST-registered entity who accounts for tax payable on a payment basis can no longer apply to change the registered entity's accounting basis to an invoice basis.
For more information:
http://www.ird.govt.nz/technical-tax/legislation/2012/2012-88/2012-88-GST/2012-88-liquidators-and-receivers/
14 January 2013 - Proposed changes to the thin capitalisation rules
Proposals in the Inland Revenue official's issues paper released on 14 January 2013 would bolster the taxation of highly leveraged investments made by foreigners, through changes to the thin capitalisation rules. The thin capitalisation rules are intended to prevent non-residents from using excessive interest costs to reduce their tax liabilities, but have not been effective in all cases.
The main proposals are to:
- extend the current rules to apply also to New Zealand businesses controlled by a group of non-residents acting together, and to
- disregard some shareholder debt when calculating the worldwide group ratio.
These proposals have been designed to limit any effects on investors who use third-party debt, such as debt from an unrelated bank.
http://taxpolicy.ird.govt.nz/news/2013-01-14-officials-issues-paper-released
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