In December 2020, the NZ Government passed legislation to implement a new personal tax rate of 39% for those with personal incomes above $180,000. This new rate comes into effect from 1 April 2021 (the 2021-2022 income year).
What You Should Know
As with any changes in tax, there are knock-on effects that you should know about. These include:
- New Fringe Benefit Tax rate of 63.93% for all-inclusive pay of more than $129,681
- Employer Superannuation Contribution Tax rate of 39% on superannuation contributions for employees whose income from employment and from employer Kiwisaver contributions exceed $216,000 per annum.
- 39% Resident Withholding Tax rate for individuals on interest income
- 39% Residential Land Withholding Tax Rate on residential land sales by offshore persons within the bright-line period
- 39% non-declaration rate of taxable Māori authority distribution, where a member has not provided an IRD number
Meanwhile, there are no changes to PIE tax rates for individual investors or to Resident Withholding Tax on dividends.
Need guidance on these changes or help with your tax? Get in touch with us today and let our advisors help you navigate these upcoming changes.