Back to Blog

GST and E-Commerce

Sale of Physical Goods via the InternetIf a GST-registered person sells goods via the internet and the goods are physically supplied to a customer in New Zealand, GST is chargeable at 15%.If goods are sold via the internet and physically supplied to customers overseas the sales can be zero-rated for GST purposes. It is important to prove the goods have been exported (entered for export by the supplier) and sufficient evidence should be held to prove the export.Sale of Digital Goods via the Inter...

KiwiSaver

KiwiSaver is a voluntary savings scheme set up by the government to help New Zealanders to save for their retirement. All New Zealand residents and people entitled to live here permanently are eligible to join.  All new eligible employees must be automatically enrolled in KiwiSaver.  However, there are some employees who are exempt from automatic enrolment.  These include:Those under 18 years of ageCasual agricultural workers (who are employed on a day-to-day basis for no more tha...

PAYE on Salaries and Wages

Pay As You Earn (PAYE) is the basic tax taken out of your employees' salary or wages. The amount of PAYE you deduct depends on each employee's tax code.PAYE employees must complete a Tax code declaration (IR 330) as soon as they start working for you. If an employee fails to complete the tax code declaration, you must deduct PAYE at the no-declaration rate.Payday filing was introduced for the way businesses report payroll information and became compulsory in 2019.Employers must:Fi...

Provisional Tax

Provisional Tax is not a separate tax but a way of paying your income tax as income is received through the year. You pay instalments of income tax during the year, based on what you expect your tax bill to be. The amount of provisional tax you pay is then deducted from your tax bill at the end of the year.From the 2020 income tax year, if your residual income tax (RIT) is $5,000 or more, you will have to pay provisional tax for the following income year. RIT is the tax you need to pay afte...

Resident Withholding Tax (RWT)

Resident Withholding Tax (RWT) is a tax deducted on interest earned from investments and bank accounts.  The investment organisation or bank deducts this tax when they credit interest to you.Companies may also deduct withholding tax from dividends paid to shareholders.If you receive interest as income you need to:Provide the interest payer with your IRD number, andAdvise the tax rate they should use when they deduct this taxThe RWT tax rate used will vary for individuals and different types...

Tax Credits for Donations

Tax credits for donations can be claimed by individuals (not companies, trusts or partnerships) who:Earned taxable income during the period being claimed for; andWere in New Zealand at any time during the tax year (including non-residents)You may qualify for a tax credit for:Donations made of $5 or more to an approved charityDonations made of $5 or more to state and state integrated schools (note donations do not include tuition fees, payment for voluntary school activities, payments for classes...

Taxpayer Penalties

Taxpayers who do not meet their tax obligations may face penalty or interest charges. To avoid such charges, you should pay the full amount of tax you owe by the due date.The main kinds of charges for failing to meet tax obligations are:Interest on the amount of tax you owe if you have underpaid your tax. The interest rates charged are based with reference to market rates.A late filing penalty if you do not file a return by the due date.A late payment penalty if a paymen...

Working for Families Tax Credits

Working for Families tax credits are payments for families with dependent children aged 18 or under.There are four different Working for Families Tax Credits:Family tax credit – a payment for each child in the familyIn-work tax credit – a payment to eligible families who are not receiving an income-tested benefit or student allowance and have some income from paid work each weekMinimum family tax credit – a payment to make sure families are getting a basic income where the p...