Self-employed customers who received a wage subsidy or leave payment from the Ministry of Social Development (MSD) due to COVID-19 may need to account for this income in their 2020 and 2021 income tax returns.
These payments are not subject to GST or ACC levies. Do not include them in a GST return.
Amounts received through these schemes can be spread over the 2020 and 2021 income years.
How to include these payments in your tax return
Include payments from these schemes in the other income field in your tax return. This lets us know ACC levies are excluded from this income.
If you’ve made a partial repayment to MSD, put the net amount (total received minus repayments made) in your return.
If you use the Accounting Income Method (AIM)
If you have not already accounted for the wage subsidy or leave payment for provisional tax in a past AIM period, do so in your next AIM period.