Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009
Resident withholding tax rates on interest income
Resident withholding tax (RWT) rates on interest income have been aligned with recent changes to the company and individual income tax rates.
Portfolio investment entity tax rates
Changes have been made to the tax rates on portfolio investment entities (PIEs) and the income thresholds so they align with the new personal tax rate structure enacted in 2008.
Retirement scheme contribution tax rates
Amendments have been made to the Income Tax Act 2007 to align the retirement scheme contribution tax (RSCT) rates with the new personal tax rate structure from 1 April 2010.
Tax treatment of extra pays
A consequential amendment to the Income Tax Act 2007 introduces a new 12.5% withholding tax rate for extra pays.
New secondary tax code
A new 12.5% secondary tax code has been introduced to align withholding rates on secondary income with the new personal income tax rates introduced in 2008.
Income tax treatment of PFSI forestry
Amendments have been made to ensure that foresters under the Permanent Forest Sink Initiative (PFSI) are eligible for the same tax treatment for expenditure as those who carry out conventional forestry and to use income equalisation accounts.
Timing of allocation of beneficiary income
Section HC 6 has been amended to remove a timing problem for tax agents who administer trusts, in particular, to allow them more time to allocate beneficiary income.
Portfolio listed companies - extension of time for listing on a recognised exchange
Currently PIEs that are not listed on a recognised exchange but intend to list, and demonstrate this intention by complying with a number of criteria, can elect to be a portfolio listed company.
Taxation of outbound dividends
New rules have been introduced for dividends paid by New Zealand companies to non-resident shareholders.
Tax treatment of New Zealand superannuation and the veteran's pension payable overseas
Changes have been made to the income tax treatment of New Zealand superannuation and the veteran's pension, which are payable overseas.
Tax recovery arrangements
Section 173G of the Tax Administration Act 1994 has been amended (and the definitions of "contested tax" in sections 3 and 173B of that Act have been consequentially repealed).
Electronic communications
An amendment has been made to the Tax Administration Act 1994 which allows Inland Revenue to issue notices and other information electronically in a broader range of circumstances than previously.
Personal tax summaries
A personal tax summary (PTS) is issued to some salary and wage earners at the end of the income year. It shows a taxpayer's income details for the year and whether the taxpayer needs to pay further tax or if they are entitled to a refund.
Correction of minor errors in subsequent returns
A rule has been introduced to allow taxpayers who have made minor errors in a return (involving $500 or less in tax) to correct them in a subsequent return.
GST treatment of waste disposal levy payment
Changes have been made to the Goods and Services Tax Act 1985 to clarify the tax treatment of the waste disposal levy, introduced on 1 July 2009, under the Waste Minimisation Act 2008.
GST on facilitation services
Changes have been made to the Goods and Services Tax Act 1985 to clarify the GST treatment of facilitation services provided by inbound tour operators (ITOs).
Date published: 28 Jun 2010
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