On 29 March 2018 the Taxation (Annual Rates for 2017-18, Employment and Investment Income, and Remedial Matters) Bill was passed into law.
This Bill implements, amongst other things, the following:
• requires employers to provide information to Inland Revenue on a payday basis instead of a monthly basis. This is optional from April 2018 but is mandatory for all employers from 1 April 2019.
• payers of investment income will be required to provide detailed information as to the persons receiving that income. Monthly reporting will be mandatory from 1 April 2020.
• simplifying the taxation of employee share schemes.
• an additional option for employers to tax holiday pay paid in advance, or salary and wages paid in advance, as if the amount paid was paid over the pay periods in which it relates.
• the Commissioner will have the discretion to issue an IRD number to an offshore person who does not have a New Zealand bank account.
• Extension of the 2-year brightline test to five years. This was announced in our April 2018 Topical Taxes.
If you have any questions on these changes please give us a call.