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Inland Revenue

Tax Policy

DEV-22-MIN-0028 – Minute: Dividend integrity and personal services income attribution: release of discussion document


Cabinet Economic Development Committee

Minute of Decision

This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.

Dividend Integrity and Personal Services Income Attribution: Release of Discussion Document

Portfolios Finance / Revenue

On 9 March 2022, the Cabinet Economic Development Committee (DEV):

1 noted that on 23 November 2020, Cabinet agreed to implement a new personal income tax rate of 39 percent for income over $180,000 [CAB-20-MIN-0484];

2 noted that the Minister of Finance and the Minister of Revenue have decided to progress work on measures to support the integrity of the 39 percent personal income tax rate in tranches;

3 noted that the discussion document Dividend Integrity and Personal Services Income Attrition (the discussion document), attached to the paper under DEV-22-SUB-0028, relates to tranche one of this work;

4 agreed to the release of the discussion document, subject to any minor or editorial changes that may be required;

5 invited the Minister of Finance and the Minister of Revenue to report back to DEV on the outcome of the consultation and with final policy proposals, in June 2022.

Janine Harvey
Committee Secretary

Hon Grant Robertson (Chair)
Hon Dr Megan Woods
Hon David Parker
Hon Nanaia Mahuta
Hon Poto Williams
Hon Kris Faafoi
Hon Willie Jackson
Hon Michael Wood
Hon Meka Whaitiri
Hon Phil Twyford
Rino Tirikatene MP
Dr Deborah Russell MP

Officials present from:
Office of the Prime Minister
Officials Committee for DEV