Budget 2016 has introduced some business tax changes that will come in to effect on 1 April 2017. What you need to know if you pay schedular payments Tax rate notification for contractors (IR330C) form From 1 April 2017 if you have contractors receiving schedular payments and they want to change their tax rate or […]
From 1 April 2012 you can no longer claim tax credit for childcare or housekeeper payments. From 1 April 2014 you can only claim donation tax credits within a period of four years, following the year in which the gift was made. We will process your claim for a tax credit with the minimum of […]
The latest phishing scam appearing to be from Inland Revenue asks people to save an attachment and open it using a browser. This leads to a fake Inland Revenue form requesting confidential information, such as a password, credit card details, etc. We have taken down two of these fake sites, but there is a high […]
Identity theft is using someone’s private information to pretend to be that person and gain access to resources or benefits. The most common methods that fraudsters use to collect this information are email and phone scams. By learning how scams work and how to protect your personal information, you can reduce your chances of becoming […]
The amount of income tax you pay depends on your income and whether you are entitled to any tax credits. This will undoubtedly change throughout your life, and thus so will your income tax rate. IRD Number Before you begin any form of paid employment in New Zealand, you must have an IRD number by […]
The sales tax increase back in late 2010 outraged many Kiwis, making our already highly-priced goods and services even more expensive. But how does this increase actually affect us? Compared to the rest of the world, is a 15% sales tax considered too high or low? And how much does it really matter when taking […]
Working for Families was introduced in 2004. It is designed to ensure that all New Zealand families have adequate income, and to support parents who are in paid employment. If you have dependant children of 18 years or under (dependant means they are supported by you, and are not in paid employment), you may be […]
Income tax is imposed by governments on income created by all individuals who come within the law of that country. Income tax includes almost everything a person earns – salaries, dividends on investments, savings accounts, rents, etc. A monthly payment for professionals like lawyers, doctors and authors is also included under the ambit of income […]
There is a package provided by Work and Income and the Inland Revenue Department available to working parents, which comes under the banner of “Working for Families.” Working for Families is a package designed to help make it easier to work while raising a family. The Working for Families package is available for almost all […]
A huge number of people don’t realise that they could be entitled to a New Zealand tax refund. Indeed, millions of dollars are lost to the government each year in overpaid tax. Whether you investigate yourself or employ the services of a tax agent, always check what you are rightfully entitled to or you could […]
Have you been retired for a decade or more and wonder if your retirement funds are sufficient? Are you finding your money is buying less or are you able to afford more luxuries? This article looks at retirement income compared to a decade ago. These questions are quite hard to answer in a general way, […]
What has changed in the last decade on income tax? Income tax rates in New Zealand are in a constant state of change. These changes occur often and regularly, due to changes to shifting financial climates as well as the changing policies of Governments. Changes to income tax rates are not usually wholesale changes or […]
All Kiwis pay tax on the income they earn. This payment is mandatory and applies to all wages, commissions, return on investments, rent from property, or any other source of income. The residents of New Zealand are accountable for their worldwide taxable income. The Inland Revenue Department collects taxes on behalf of the government. The […]
Just when you think you’ve got a handle on the best income tax credit for your needs, the IRD comes along and changes the rules! Here in New Zealand, you can claim tax credits for all kinds of things. That way, you can reduce your net income — and, as a result, reduce your tax […]
Every year, millions of taxpayers promptly pay up income tax as mandated by the Government of New Zealand. Taxpayers cough up billions of dollars in taxes, filling up the government coffers and hoping that their hard earned money is wisely spent on public services that will enhance their quality of life in the years to […]
The income tax rate, the rate that every New Zealander pays on every dollar that they earn, is always a hot topic, especially around election time. But how much are we actually paying, and how does the New Zealand income tax rate compare to other countries? One thing most of us do know, is that […]
The amount of your New Zealand tax refund, if any, will be determined by your personal circumstances, and many people are pleasantly surprised by the amount of refund they receive. There is no way to calculate how much an average tax refund would be, as it varies so much between individuals. Some tax agents claim […]
Income tax is something we have to pay, and like Benjamin Franklin said, only two things are certain in life, taxes and death. We pay income tax on every dollar we earn and it comprises a part of every minute we work. Unfortunately, when it comes to New Zealand income tax rates, we only get […]
How have the Global Financial Crisis, petrol price hikes, GST rise, and different parties leading New Zealand’s Government affected income taxes over the last 20 years? The tax-paying generation of the early 1990s included the Baby Boomers and ‘Generation X’. Twenty years on, their children, ‘Generation Y’, are now paying tax. A lot has happened […]
What is the tax rate on your earnings from trusts? The income from a trust is separated into two parts for tax purposes: beneficiary income and trustee income. Beneficiary income is all the money given to a beneficiary of the trust during the tax year, or money used for their benefit within six months of […]
It is common knowledge that individuals in New Zealand pay tax on all the various types of income that they earn. Direct taxation is compulsory for all Kiwis who earn a salary, wages, commissions or any other form of income. We also know that the New Zealand law requires almost all individuals to pay income […]
Income tax in New Zealand is collected by the Inland Revenue Department (IRD) on behalf of the Government of New Zealand. National taxes are levied on personal and business income, as well as on the supply of goods and services. The types of taxable income are salary and wages, business and self-employed income, income from […]
Retirement planning is where you consider your financial situation for when your golden years, among other things. Are you planning to live with your kids when you retire? Because that’s what people were expected to do once upon a time, and while many cultures still embrace that idea it’s not so common amongst New Zealanders. […]
An insight to trading and selling on online auction sites in New Zealand – what you need to know about the personal income you earn over the internet. Should you be paying tax on your online income? These days, the majority of us buy goods online traders and often sell stuff as well. With auction […]
Benjamin Franklin once said there are two certainties in life – death and taxes! What isn’t so certain is what type or how much those taxes will be. The Inland Revenue Department (IRD) collects over 80% of the government revenue, with just under half of that coming from individual income taxes. The current income tax […]
Whether you are in paid employment, running a business or on a benefit, you will need to pay taxes and the more you know it, the better equipped you will be to get the best out of your tax return. First of all, it helps to know why we have to pay taxes. Every person […]
Once you know how much you will be getting back from your income tax refund, the biggest question becomes: what am I going to use it for? And it’s a fair enough question, because it isn’t every day that you get an unexpected lump sum of cash deposited directly into your bank account. So to […]
Most people work for wages in New Zealand, and their income tax is paid directly by their employer to the Inland Revenue Department (IRD) under the Pay As You Earn (PAYE) scheme. In most cases, the correct amount of tax is paid and you will not need to do anything at the end of the […]
The fact that New Zealander’s consistently overpay their income tax was a little known only half a decade ago. Until recently only a very small percentage of the population actually applied for their tax refunds because the process was difficult, lengthy and required a large amount of paperwork. Luckily these days, services like MyRefund.co.nz have […]
When your baby is born, he/she will bring you more love and devotion than you ever thought possible — but did you know that your little bundle of joy may also bring you a tax credit? Thanks to the Working for Families program, you can get a parental tax credit that covers the first eight […]
A student loan is intended to help students pursue education. It helps them pay for the tuition fee, books and living expenses while pursuing a degree at a university in New Zealand. The requisite funds can be borrowed from the government at a substantially low rate of interest. In many countries, the government and financial […]
An occupation is a set of jobs characterised by a high degree of similarity. It requires specialisation of skills to execute the tasks proficiently. As an economy, New Zealand depends greatly on international trade. Exports of wool, meat and dairy products were at one point the core of the economy. Tourism is another sector which […]
Did you know that most New Zealand residents overpay their taxes? As efficient as the PAYE system tries to be, there are plenty of times when employers wind up deducting too much over the course of a year. So, before you simply assume that what you’ve paid is what you owe, follow these 5 tips.You […]
We all have to pay income tax but most of us end up unknowingly paying too much. As income tax is deducted from your monthly salary before it even reaches you, it can be difficult to know whether you are paying too much or not. However, there are a number of reasons for which you […]
The annual tax refund season runs at the start of each new financial year, after the Inland Revenue Department has confirmed income details, and those who are entitled to a refund could have the money in their account around the end of June. So how do you know if you are owed a refund on […]
For many people, the answer is – Yes. Not because their tax officers are sneaking in a little more compensation for their work, but simply because some of us have overpaid our taxes. Thankfully, there is an easy way to get our money back – this is called a tax refund. But what exactly is […]
