|Type of payment
|Payment for employee’s meal expenses during work travel
||The amount the employee saves on day-to-day meal costs during work travel may be taxable because meal costs are generally treated as private expenditure. In practice, employers do not tax payments regardless of duration of travel.
||Payment tax-free if duration of travel to particular work location is no more than 3 months. Taxable in full for longer trips.
|Payment for work-related meals outside of work travel
||As for work travel, the amount the employee saves on their meal costs is taxable because it is private expenditure. In practice, employers do not tax these payments.
||Payment tax-free if not regular payment for employee services.
|Payment for employee’s accommodation expenses during work travel
||While generally not taxable, there may be circumstances when the expenditure is of a private nature and therefore taxable. In practice, employers do not tax these payments.
||Payment tax-free if duration of work travel to particular work location is no more than 12 months. Taxable in full for longer trips.
|Payment for accommodation costs outside of work travel
||The payment is taxable because accommodation is a private cost.
||No change, the payment would be taxable.
|Employer provides accommodation at or near work place
|| The market value of accommodation is taxable. In practice this is interpreted to mean rental value and can take into account any contribution from the employee.
||Confirm the legislation to ensure taxable value is rental value, subject to any employee contribution.
|Payment for accommodation costs where more than one permanent work place
||In some circumstances the payment may be taxable because accommodation is a private cost.
||Special rules to ensure that a payment to meet accommodation costs at one location is not taxable in certain circumstances.
|Payment for accommodation costs for employees seconded overseas who remain NZ tax resident
||The payment is taxable, at a value based on market rent in the overseas location.
||Special rules to limit tax value – for example, NZ equivalent rent.
|Payment for communications (including telephone and internet)
||The value of any private expenditure is taxable and in practice this will mean an apportionment is required according to the private/work-related split.
||Taxable in full except where private/work element able to be separately identified.
|Payment for work-related clothing
||The payment is not taxable if the payment is for work uniform/specialist clothing.
||Confirm not taxable only when payment is for a work uniform/specialist clothing.