Inland Revenue has made some updates that we thought you might like to know about, these Tax Tips have been outlined below:

Interest rates

Effective 29 August 2019, IRD has changed the use of money interest rates as follows:

• An increase for taxpayer’s paying rate of interest on the unpaid tax from 8.22% to 8.35% per annum, and
• A decrease of the Commissioner’s paying rate of interest on the overpaid tax from 1.02% to 0.81% per annum.

IRD Payment Changes

From 1 March 2020, IRD will no longer accept cheques if customers have alternative payment options available (this includes any post-dated cheques after 1 March 2020). Suggested ways to pay are as follows:

• myIR: You can pay by direct debit and make debit card and credit card payments securely through myIR online services.
• Online banking: You may be able to make payments using online banking.
• Credit or debit card via IRD website: Use your credit or debit card to make online payments through the IRD website. Visit ird.govt.nz/pay.
• In person at Westpac: Pay by EFTPOS or cash at a Westpac branch or Smart ATM.
• Money transfer: If you are overseas you can pay us using a money transfer service. Search for “make a payment” on the IRD website for more information.

GST Changes

New GST rules on low-value goods being imported will come into effect from 1 December 2019. Non-resident suppliers (including electronic marketplaces) need to register for and charge GST if the turnover from those supplies exceeds $60,000 in a 12-month period and if they are:

• resupplying any goods that are supplied by a non-resident,
• are outside of NZ at the time of supply or are delivered to a place in NZ by the supplier and has entry value of $1,000 or less.

The rules are not intended to apply to supplies made to GST registered businesses, or to supplies valued over $1,000, but to reduce compliance costs and subject to certain thresholds. The non-resident supplier can be permitted to also charge GST on those supplies.

The $1,000 threshold applies per item instead of per invoice/transaction. High-value items will continue to be taxed at the border as they come into New Zealand except for fine metal, alcohol and tobacco products.

Resident Withholding Tax (RWT) Changes

From April 2020, the new non-declaration rate for RWT on interest income will be 45%. If you will be receiving interest income we recommend your correct tax rate is provided to your investment provider or organisation.

If you have any queries about the above rate changes, please contact Sheral Reddy or your GECA advisor.

The post Tax Tips November 2019 appeared first on GECA Chartered Accountants.

Inland Revenue have made some rates updates that we thought you might like to know about, these have been outlined below:

Motor Vehicles

The kilometre rates for 2019 are:

Tier One rates can be used for the first 14,000 kilometres of travel (for both business and private use), while Tier Two rates are used for travel beyond the first 14,000 kilometres.

Employees can be reimbursed using these rates, with Tier One rates available for the first 3,500 kilometres of reimbursement and Tier Two rates available for travel beyond the first 3,500 kilometres. Employees should keep a log book showing their business-related mileage. They can potentially claim a higher number of kilometres at the Tier One rate. For example, use the Tier One rate for the business portion of the first 14,000 kms (total) travelled by the vehicle in the income year, and then the Tier Two rates after that.

AA rates and actual costs can also be used as an alternate when claiming a deduction or reimbursement for a vehicle used for business purposes.

Home Office Deduction

The square metre rate for 2019 is $41.70 per square metre.  The square metre rate can be used to claim a deduction where you use part of your house for business purposes.  This excludes mortgage interest, rates or rent which can be claimed on a pro-rata basis as an additional deduction.

Money Interest Rates usage

From 29 August 2019, Inland Revenue use of money interest rates will be changing.  The debit rate (the rate you pay to Inland Revenue) will be increasing from 8.22% to 8.35% per annum, while the credit rate (the rate Inland Revenue pays you) will be decreasing from 1.02% to 0.81% per annum.

Got a tricky tax problem, call us now on 0800 758 766 to see what we can do to assist. Alternatively, you can email support@geca.co.nz. 

Download a pdf of the 2019 year-end tax tips

Credit: Information has been collated from www.ird.co.nz and excerpts from this article.

The post Tax Tips appeared first on GECA Chartered Accountants.