New trust tax rate: mitigating over-taxation

As part of the Taxation (Annual Rates for 2023 – 24 Multinational Tax and Remedial Matters) Bill, the trust tax rate will increase from 33% to 39% from 1 April 2024.   The new tax rate may be cause for concern for individuals with assets held through trusts, as even those not considered high-income earners may end up with their trust paying tax at a high rate of 39%. Inland Revenue…  Read more

Improving landscape for residential property investors: interest deductibility & bright-line rule changes

In recent times residential property investors have felt the weight of evolving tax policies and higher interest rates. However, with changes to interest deductibility and the bright-line rules in the coming financial year, there is appears to be a more favourable investment landscape ahead.   Interest deductibility A concern for residential property investors has been the limitations on interest deductibility. Under the previous Labour government, the ability to offset mortgage…  Read more

“App tax” coming 1 April 2024: GST on all Airbnb and digital platform services 

The new National coalition government has decided to keep the “app tax” initiated by the previous Labour government in 2023. During election campaigning National had promised to reverse the change that would have seen GST imposed on accommodation and transportation providers on platforms like Uber and Airbnb. However, now as they seek means to fund their coalition policy initiatives, they’re sticking with Labour’s plan, and the change will happen next…  Read more

Cross-border and remote workers tax changes

The way people work has transformed due to the Covid-19 pandemic, leading to an increase in remote work, including cross-border arrangements. This shift benefits employers by expanding the talent pool and employees by offering a better work-life balance, eliminating long commutes, and providing more flexibility. However, it’s crucial to be aware that working across borders can result in tax responsibilities for both employers and employees. These obligations may be unclear…  Read more

Tax considerations for short-term vs long-term residential rental income

Owning a residential rental property can be a lucrative investment, providing a steady stream of income for property owners as well as long term capital growth. However, when it comes to tax considerations, the type of rental income—short-term or long-term—can significantly impact your financial obligations. Whether you are a short or long-term rental property owner in New Zealand, you must report your earnings on your annual income tax return. It’s…  Read more

Budgeting and cash flow forecasting: key to your business success

If enhancing your business strategies is on your list of New Year’s resolutions, now is a good time to revitalise your approach and set the stage for success in the upcoming year. In the unpredictable world of business, finding a little certainty can make all the difference and tools such as budgeting and cash flow forecasting can significantly reduce the level of uncertainty, allowing you to anticipate challenges, learn from…  Read more

Strategies for boosting your startup’s cash flow

In the unpredictable world of startups, maintaining a cash surplus can be a lifesaver. It provides a safety net in case sales don’t meet expectations or unexpected expenses arise. Aside from providing security, surplus cash also paves the way for expansion opportunities, handling large bills, or purchasing essential equipment. While injecting personal capital or taking out a loan can aid in creating a cash surplus, let’s explore some other effective…  Read more

GST & Unit Title Bodies Corporate (UTBC)

The IRD has recently published an interpretation statement (IS 23/08) to provide guidance on how GST applies to different transactions between a unit title body corporate, its members, and third-party suppliers. A UTBC is a separate legal entity to its members.  It can decide whether to register for GST.  UTBCs are generally considered only making taxable supplies to their members in the form of members’ levies.  The value of supplies…  Read more

Setting your chargeout rate as a professional services provider

If you operate as a self-employed lawyer, IT specialist, architect, manage a firm or agency, or provide professional services in any capacity, your time is your most valuable asset. As such, it’s crucial to ensure that you’re charging appropriately for your services, not only to maximise your income but also to maintain fair wages for your staff and strike a healthy work-life balance for yourself. In this post we look…  Read more

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