Automatically issued income tax assessments and individual income tax returns - IR3s
The tax year is from 1 April to 31 March. The aim is that you pay the right amount of tax at the right time so that you don’t overpay during the year or have a bill to pay at the end of the tax year.
After the end of each tax year we'll send you one of these:
- an automatically issued income tax assessment telling you if you have a refund or tax to pay
- a request for you to provide or confirm information about your income
- a message to complete your individual income tax return - IR3 in myIR, or a paper copy by post.
We work out if you’ve paid the right amount of tax each year using the information we hold about your income and the tax you’ve paid.
If you receive an automatically issued income tax assessment, you need to check it and tell us about any changes.
You need to tell us about other income you received and any expenses you need to claim.
If you applied for and received a wage subsidy from the Government during the 2020 – 2021 tax year this is taxable income.
Where you received the wage subsidy via an employer with tax deducted by them you do not need to do anything further as the income will pre-populate in your return as either gross earnings or schedular income.
Where you received a wage subsidy directly or through an associated entity (e.g. a Trust) without tax deducted, you’ll need to declare your wage subsidy income by filing an IR3 individual income tax return and including the wage subsidy income in the “Government Subsidies” field. We will send you an IR3 and you can file in myIR at any time. IR3 returns need to be filed by 7 July unless you have an extension of time.
If you’ve made a partial repayment to MSD prior to 31 March 2021, put the net amount (total received minus repayments made) in your return.
Your income tax assessment will include portfolio investment entity (PIE) income and tax deductions – like KiwiSaver.
This is calculated using prescribed investor rates (PIR) rather than income tax rates. Where you have overpaid PIE tax, we’ll factor this into your overall income tax assessment, which means you may receive a refund. The PIR you should be using for your PIE income will be displayed in your myIR account.
You can also use our online calculator to work out which PIR you should be using.
If you have received employee share scheme income that is not taxed by your employer, you may have tax to pay on this income. This detail will be included in your income tax assessment.