Foreign Superannuation (or Pension Fund)
New rules relating to the taxability of receipts from overseas pension funds (other than Australian Superannuation) kick in from 1st April 2014. They need to be disclosed and included in NZ tax returns. The tax regime relating to these receipts is complex and taxation can vary from 4.76% to 100%. However, there is an amnesty option (to encourage compliance before the introduction of the new rules) to pay a minimum tax and make the balance of the undrawn funds non-assessable. Please contact us if you require advice.
FBT for charitable organizations
Vouchers (for example, petrol or grocery vouchers) that a charitable organization gives to their employees will be considered short-term charge facilities. FBT needs to be calculated if the value of these benefits is more than $1,200 or 5% of the employee’s salary or wages for the year (whichever is less).
Zero-rating supply
New Zealand manufacturers will be able to supply some tools at zero percent (0%) to non-residents who are not GST-registered The tools must be used for manufacturing goods that will be exported.
Child support
Child support will be based on the incomes of both parents, the cost of raising children today, including their ages, and the amount of care each parent provides.
The child support changes will not affect a sole parent or unsupported child benefit from Work and Income. Any child support entitlements over and above the amount of the benefit will remain.
Claiming Tax Refunds
A taxpayer who is not required to furnish a tax return but chooses to do so to get a refund will have to supply tax returns for the previous four years.
All information in this newsletter is to the best of the authors’ knowledge true and accurate. No liability is assumed by the authors, or publishers, for any losses suffered by any person relying directly or indirectly upon this newsletter. It is recommended that clients should consult a senior representative of the firm before acting upon this information.
