Monthly Archives May 2016
May 30, 2016 New Zealand Taxation
The Taxpayers’ Union is calling on the government to look at legalizing e-cigarettes instead of just unfairly raising taxes on tobacco.
Late last week the Taxpayers’ Union issued a press release calling the government’s latest round of tax hikes of tobacco products “morally questionable”.
The government has announced that each year until 2020 the tax on tobacco products will rise by 10 percentage points.
In its press release the Taxpayers’ Union claimed that smokers already pay enough tax on their purchases to cover their own smoking-related healthcare costs three times over.
It was also added that often the people who are paying a large portion of the taxes on cigarettes are low-income individuals who are least able to afford the rising costs.
As an alternative to the tax hike...Read More
May 25, 2016 New Zealand Taxation
The ACT Party wants to ease the tax burden faced by workers earning between NZD 48 thousand and NZD 100 thousand.
In a press release issued on May 25th the ACT Party called for a rejig of the thresholds for personal income tax in New Zealand.
The proposed new tax breaks would remain the same for salaries below NZD 48 thousand, but would be dropped to 25 percent from 30 percent on incomes between NZD 48 thousand and NZD 100 thousand.
All incomes in excess of NZD 100 thousand will be taxed at 33 percent.
The changes to the tax brackets would primarily help taxpayers earning between NZD 48 thousand and NZD 100 thousand, as “…these are hard-working Kiwis paying off mortgages and raising families. Yet National taxes them at 33%...Read More
May 23, 2016 New Zealand Taxation
In a few days time the average New Zealand taxpayer would have earned enough to pay their taxes for the year.
In a press release issued on May 23rd the New Zealand Taxpayers’ Union revealed that Tax Freedom Day in 2016 falls on the same day as the national budget announcement, May 26th.
According to the Tax Payer’s Union, the general government outlays of the New Zealand government are 40 percent, meaning that Tax Freedom Day will fall at 11:12am on Thursday.
Tax Freedom Day is a hypothetical measure of how long an average taxpayer needs to work in order to pay for their entire tax obligation for the year.
The fall of Tax Freedom Day is 3 days later than in Canada, and 15 days later than in Australia.Read More
Photo by yum9me
May 18, 2016 New Zealand Taxation
The IRD has released its rules for the upcoming GST rules, showing how suppliers must determine whether customers are from New Zealand or not.
On May 17th the Inland Revenue Department issued a Special Report on the upcoming rules regarding GST charges on remote and online services provided by non-resident businesses.
From October 1st any offshore business providing remote services to New Zealand tax resident will need to collect and pay GST, if the cumulative amount provided to New Zealanders over the course of the year is expected to exceed NZD 60 000.
The New GST rules have come to be known as the “Netflix Tax”, named after the popular online media streaming service.
The suppliers will be required to take ascertain whether the clients are from New Zealand, and may be required to col...Read More