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Taxation (KiwiSaver and Company Tax Rate Amendments) Act 2007

The Taxation (KiwiSaver and Company Tax Rate Amendments) Bill was introduced into Parliament under urgency on 17 May 2007. The bill was tabled during the Budget debate and passed through its final stages in Parliament on 17 May. It gave effect to Budget announcements of a company tax rate reduction, an associated reduction for certain savings vehicles, and the new tax credit for members of KiwiSaver schemes. The bill also made technical changes to the portfolio entity tax rules and to the KiwiSaver Act 2006, to ensure the smooth introduction of KiwiSaver in July. The resulting Act received Royal assent on 21 May 2007. The Act amends the Income Tax Act 2004, the Tax Administration Act 1994, the KiwiSaver Act 2006, the Companies Act 1993, the Superannuation Schemes Act 1989, the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 and the Goods and Services Tax (Grants and Subsidies) Order 1992.

KiwiSaver Amendments

The government announced a set of enhancements to KiwiSaver in Budget 2007.

Changes to the company tax rate

The tax rate for companies and certain savings vehicles has been reduced from 33% to 30%.

Provisional tax

Transitional uplift factors relating to the calculation of provisional tax have been introduced.

Remedial amendments to the Portfolio Investment Entity tax rules

A number of technical amendments have been made to the portfolio investment entity tax rules to give effect to the policy intent of the rules.