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Tax policy news

New Tax Bill introduced
08 September 2022

The Minister of Revenue introduced the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Bill (No 2) into Parliament today.

The Bill contains a range of proposed improvements and maintenance measures to ensure the smooth functioning of the tax system, including proposals to:

  • set the annual income tax rates for the 2022–23 tax year
  • implement the OECD’s information reporting and exchange framework for activities being facilitated by digital platforms in the sharing and gig economy
  • collect GST on accommodation and transportation services provided through electronic marketplaces
  • reform the GST apportionment and adjustment rules
  • clarify the GST treatment of legislative charges
  • modernise and clarify the rules for employers and payers in relation to cross-border workers
  • ensure New Zealand companies affected by recent changes to Australia’s corporate residency tax rules have uninterrupted access to New Zealand’s loss grouping, consolidation and imputation credit regimes
  • address integrity issues with the application of the domestic dividend exemption and corporate migration rules to dual resident companies
  • introduce a fringe benefit tax exemption for public transport, and
  • introduce an exemption from the interest limitation rules for build-to-rent assets.

For more information, see:

R&D Tax Incentive deadline for certain notifications extended
07 September 2022

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.

Final long-term insights briefing
31 August 2022

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.

Tax Bill introduced
30 August 2022

The Minister of Revenue introduced the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Bill into Parliament today.

The Bill contains a range of proposed improvements and maintenance measures to ensure the smooth functioning of the tax system, including proposals to:

  • set the annual income tax rates for the 2022–23 tax year
  • implement the OECD’s information reporting and exchange framework for activities being facilitated by digital platforms in the sharing and gig economy
  • collect GST on accommodation and transportation services provided through electronic marketplaces
  • subject services supplied by managers and investment managers to managed funds and retirement schemes to 15% GST
  • reform the GST apportionment and adjustment rules
  • clarify the GST treatment of legislative charges
  • modernise and clarify the rules for employers and payers in relation to cross-border workers
  • ensure New Zealand companies affected by recent changes to Australia’s corporate residency tax rules have uninterrupted access to New Zealand’s loss grouping, consolidation and imputation credit regimes
  • address integrity issues with the application of the domestic dividend exemption and corporate migration rules to dual resident companies
  • introduce a fringe benefit tax exemption for public transport, and
  • introduce an exemption from the interest limitation rules for build-to-rent assets.

For more information, see the Bill, the Bill commentary, the departmental disclosure statement, and the regulatory impact assessments.

Tax relief for August weather event
30 August 2022

The heavy rainfall experienced from 17 to 21 August which caused significant damage and disruption, has been declared an emergency event. This allows Inland Revenue to waive use of money interest for affected taxpayers for late payment of taxes.

The emergency event applies to the Far North of the North Island, as well as the Marlborough, Nelson, and Tasman in the South Island. Businesses affected by the floods are urged to contact their tax agent if they would like to take advantage of the interest remission measure. Taxpayers will be able to apply to have late payment interest waived once they have filed their returns and paid due taxes.

The Order is now in effect and will expire on 31 January 2023.

More News

The Government's property announcements

See the summary page for details about the Government's changes to the taxation of residential investment property (last updated on 31 March 2022).

The new legislation was enacted on 30 March 2022.

Highlights

16 September 2022 – Proactive release of papers relating to the Government's GST on management services supplied to managed funds

08 September 2022 – Tax Bill introduced

19 May 2022 – Budget announced

5 May 2022 – OECD Pillar 2 consultation

Information releases

View the latest information releases available (includes Cabinet papers, minutes, and key supporting papers for tax policy related decisions).

Tax Working Group (2017–2019)

For the terms of reference, news, reports, and other information see the Tax Working Group website. (This site is now archived.)