The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill (255-1) was introduced into Parliament on 18 May 2023 and received its first reading. The Bill has been referred to the Finance and Expenditure Committee (“FEC”) with a report-back due on 18 November 2023.
The Bill contains the following eight measures:
- Setting the annual rates of income tax for the 2023–24 tax year (unchanged).
- Implementing the OECD Global Anti-Base Erosion (GloBE) rules in New Zealand. (The effective date of the GloBE rules in New Zealand would be set by Order in Council once the Government determines that a critical mass of countries has adopted the GloBE rules. This would not be earlier than 1 January 2024 for an income inclusion rule and 1 January 2025 for the undertaxed profits rule).
- Aligning the trustee tax rate with the 39% top personal tax rate from the 2024–25 income year (beginning on 1 April 2024 for most trusts).
- Amending the tax treatment of backdated lump sum ACC and MSD payments.
- Making a 3% KiwiSaver Government contribution to recipients of Paid Parental Leave who make their own contribution of at least 3% into their KiwiSaver accounts (this measure is intended to take effect from 1 July 2024 and help to increase the retirement savings of people who take time away from work on Paid Parental Leave).
- Proposing tax rollover relief in response to recent flooding events.
- Granting six charities overseas donee status.
- Extending the tax exemption for non-resident offshore oil rig and seismic vessel operators (the current exemption, due to expire on 31 December 2024, will be extended for a further five years until 31 December 2029).
I will comment further on the above measures (well, at least those which are likely to be of most interest to you), once the FEC has reported back.
This article from the 'A Week in Review' newsletter was originally published Monday 29th May 2023. If you have any questions or would like a second opinion on any national or international tax issues, please contact me [email protected].?
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