Tax relief and income assistance is available to people affected by the downturn in business due to the COVID-19 (novel coronavirus). We have a range of ways to help depending on your circumstances. If you have a tax agent, they should also be able to help.
More information about the impact of COVID-19 on health, travel, education and business and community issues is available on the New Zealand Government Website.
Writing off use-of-money interest
The New Zealand Government has announced on 17 March 2020 that it is proposing to give Inland Revenue the ability to write-off the interest we charge for late payments, also known as use-of-money interest (UOMI). This is proposed for payments due on or after 14 February 2020. Once legislation is passed, it is likely you’ll need to let us know you have been significantly affected by the COVID-19 outbreak and that you’re unable to make your payments by their due date.
Provisional tax estimates
You may be able to make an estimate or re-estimate of provisional tax, if your circumstances have changed due to the COVID-19. We can arrange early refunds if provisional tax has been overpaid.
Unable to pay your tax
If you're having difficulty paying outstanding tax, we can help you set up an instalment arrangement. You can apply in myIR.
You can also apply for a write-off due to serious hardship when you know you won't be able to pay the full amount.
If we grant relief from payment due to hardship and you have losses to carry forward, these losses will be reduced in proportion to the amount written off.
Late filing and late payment
Extensions to filing dates for some income tax returns may be available. Extensions can't be granted for GST and PAYE returns, but any penalties for late filing may be remitted. Under limited circumstances penalties for late payments incurred due to the effects of the COVID-19 may also be remitted.
Certificate of exemption
If you're currently involved in contract work where schedular payments are to be deducted, such as forestry or bush work of all kinds, fishing boat work for profit-share, you may be entitled to a certificate of exemption.
Tailored tax codes
You may be entitled to a tailored tax code if you're receiving a salary or wage and have a loss to carry forward. A certificate will be issued to you with a reduced tax rate.
If you have trouble making child support payments by due dates you should call us. It may be appropriate to re-estimate your income and reduce the assessment.
Working for Families Tax Credits
Working for Families Tax Credits entitlements are based on your yearly family income. If your family income changes, your entitlement may change.
If your yearly family income decreases you may be entitled to increased payments, or you may be able to increase the frequency of your payments.
Paid parental leave
You're eligible if:
- your baby is expected or born, or
- you become the primary carer for a child under six on or after 1 April 2016.
You'll need to have worked an average of at least 10 hours per week for any 26 of the 52 weeks immediately before the date the child comes into your care.