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IR consulting on 'Bring Your Own Device' tax guidelines

Inland Revenue has prepared guidelines which clarify tax rules when employees use their own telecommunications tools and devices for work purposes.

Often described as Bring Your Own Device (BYOD) plans, the agreements cover usage plans, mobile phones, tablets, laptops and other devices.

Many employers have a policy of agreeing to or allowing employees to use their own devices for work purposes because of the benefits of convenience, flexibility, increased productivity and cost savings that brings. But there has been some uncertainty and inconsistency in their tax approach.

The proposals seek to help resolve this uncertainty and inconsistency around the payments; to minimise compliance costs and make the whole process less complicated.

The determination lists different situations for three distinct groups.  In one case up to 75 per cent of the total bill amount can be treated as exempt income; in another it’s 25 percent; while in the third, a payment of $5 per week up to a maximum of $265 per year can be exempt income.

IR released a draft determination today (Employee use of telecommunications tools and usage plans in their employment) on the subject.

Inland Revenue welcomes your feedback on this determination as we work towards easier and more certain compliance with tax rules.

The complete consultation document with more detail can be found at:

The consultation period closes on Friday 20 September.