Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008

1: Title
This Act is the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008
2: Commencement
1: This Act comes into force on the date on which it receives the Royal assent, except as provided in this section.
2: In Part 1 sections 3 4 9 11
a: the subsections (1)
b: the subsections (2)
c: the subsections (3)
d: the subsections (4)
3: In Part 1 section 11
a: subsection (1)
b: subsection (2)
c: subsection (3)
d: subsection (4)
4: In Part 2 sections 12 17
a: the subsections (1)
b: the subsections (2)
c: the subsections (3)
5: In Part 3
a: Sections 59 60
b: Sections 24 25 26(1) 27 28 29 30 32 33 34 35 36 37 38 43 44 45 46 48(2) 49 50 56 58
c: Sections 20 21 22 23 31 48(4) 55 57
d: Sections 39 40 41 42 47 51 52
e: Section 26(2)
1: Personal tax cuts and Working for Families tax credit increase: 2008–09 start
3: Application
In this Part sections 4 9
a: the subsections (1)
b: the subsections (2)
c: the subsections (3)
d: the subsections (4) Amendments to Income Tax Act 2007
4: Income Tax Act 2007
Sections 5 2008-04-01 Income Tax Act 2007 2009-04-01 Income Tax Act 2007 2010-04-01 Income Tax Act 2007
5: Calculation of family tax credit
1: In section MD 3(4)
a: in paragraph (a)﻿(i), $4,264 $4,376
b: in paragraph (a)﻿(ii), $4,940 $5,069
c: in paragraph (b)﻿(i), $2,964 $3,042
d: in paragraph (b)﻿(ii), $3,380 $3,469
e: in paragraph (b)﻿(iii), $4,420 $4,536
2: In section MD 3(4)
a: in paragraph (a)﻿(i), $4,376 $4,487
b: in paragraph (a)﻿(ii), $5,069 $5,198
c: in paragraph (b)﻿(i), $3,042 $3,119
d: in paragraph (b)﻿(ii), $3,469 $3,557
e: in paragraph (b)﻿(iii), $4,536 $4,651
6: Calculation of family credit abatement
1: In section MD 13(3)﻿(a)﻿(i) $35,000 $35,914
2: In section MD 13(3)﻿(a)﻿(i) $35,914 $36,827
7: Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part A
1: Schedule 1 Table 1 Row Range of dollar in taxable income Tax rate 1 $0 – $9,500 0.1375 2 $9,501 – $14,000 0.1675 3 $14,001 – $38,000 0.2100 4 $38,001 – $40,000 0.2700 5 $40,001 – $60,000 0.3300 6 $60,001 – $70,000 0.3600 7 $70,001 upwards 0.3900 How to use this table:Find the range in the second column for each dollar in the person's taxable income, and apply the relevant rate for the dollar in the third column.
2:
3:
4: Section 7(2) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 7(3) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 7(4) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008
8: Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part C
1: Schedule 1 Table 1 Row Range of dollar in all-inclusive pay Tax rate 1 $0 – $8,194 0.1594 2 $8,195 – $11,940 0.2012 3 $11,941 – $30,900 0.2658 4 $30,901 – $32,360 0.3699 5 $32,361 – $45,760 0.4925 6 $45,761 – $52,160 0.5625 7 $52,161 upwards 0.6393 How to use this table:Find the range in the second column for each dollar in the person's all-inclusive pay under section RD 51, and apply the relevant rate for the dollar in the third column.
2:
3:
4: Section 8(2) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 8(3) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 8(4) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Amendments to Tax Administration Act 1994
9: Tax Administration Act 1994
Sections 10 11 Tax Administration Act 1994 2008-04-01 Tax Administration Act 1994 2008-07-01 Tax Administration Act 1994 2009-04-01 Tax Administration Act 1994 2010-04-01 Tax Administration Act 1994
10: Annual returns of income not required
1: In section 33A(1)﻿(b)
a: before subparagraph (iv)﻿(A), the following is inserted:
AA: schedule 1, part D, table 2, row 1, 2, or 3 of the Income Tax Act 2007 if that person's annual gross income is more than $38,000 but not more than $40,000; or :
b: in subparagraph (iv)﻿(A), more than $38,000 but not more than $60,000 more than $40,000 but not more than $60,000
c: after subparagraph (iv)﻿(A), the following is inserted:
BA: schedule 1, part D, table 2, row 3, 4, or 5 of the Income Tax Act 2007 if that person's annual gross income is more than $60,000 but not more than $70,000; or :
d: in subparagraph (iv)﻿(B), more than $60,000 more than $70,000
e: before subparagraph (v)﻿(A), the following is inserted:
AA: schedule 2, part B, table 1, row 1 or 2 of the Income Tax Act 2007 if that person's annual gross income is more than $38,000 but not more than $40,000; or :
f: in subparagraph (v)﻿(A), more than $38,000 but not more than $60,000 more than $40,000 but not more than $60,000
g: after subparagraph (v)﻿(A), the following is inserted:
BA: schedule 2, part B, table 1, row 2 or 3 of the Income Tax Act 2007 if that person's annual gross income is more than $60,000 but not more than $70,000; or :
h: in subparagraph (v)﻿(B), more than $60,000 more than $70,000
i: before subparagraph (vi)﻿(A), the following is inserted:
AA: schedule 2, part A, clause 4 or 5 of the Income Tax Act 2007 if that person's annual gross income is more than $38,000 but not more than $40,000; or :
j: in subparagraph (vi)﻿(A), more than $38,000 but not more than $60,000 more than $40,000 but not more than $60,000
k: after subparagraph (vi)﻿(A), the following is inserted:
BA: schedule 2, part A, clause 5 or 6 of the Income Tax Act 2007 if that person's annual gross income is more than $60,000 but not more than $70,000; or :
l: in subparagraph (vi)﻿(B), more than $60,000 more than $70,000
m: in subparagraph (via), more than $60,000 more than $70,000
n: in subparagraph (vib), more than $38,000 more than $40,000
2:
3:
4: Section 10(2) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 10(3) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 10(4) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008
11: Returns not required for certain providers of personal services
1: In section 33C
a: in paragraph (b), $9,500 $14,000
b: in paragraph (c), rate of 15% from rate of 15% or 12.5% from
2: In section 33C(c) rate of 15% or 12.5% from rate of 12.5% from
3:
4: Section 11(3) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 11(4) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008
2: Personal tax cuts: 1 October 2008 start
Amendments to Income Tax Act 2007
12: Income Tax Act 2007
Sections 13 2008-10-01 Income Tax Act 2007 2010-04-01 Income Tax Act 2007
13: Withdrawals
1: In section CS 1(7)﻿(b) $60,000 $70,000
2:
3: Section 13(2) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 13(3) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008
14: Amounts of tax for PAYE income payments
1: In section RD 10(2)﻿(a) $60,000 $70,000
2:
3: Section 14(2) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 14(3) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008
15: Payment of extra pay with other PAYE income payments
1: Section RD 17(2) Between $40,000 and $70,000
2: If the sum of the amounts referred to in subsection (1) is more than $40,000 but no more than $70,000, the amount of tax for the extra pay that must be withheld is the amount determined using the basic amounts of tax for PAYE income payments set out in schedule 2, part B, table 1, row 2 (Basic tax rates for PAYE income payments). Over $70,000
3: If the sum of the amounts referred to in subsection (1) is more than $70,000, the amount of tax for the extra pay that must be withheld is the amount determined using the basic amounts of tax for PAYE income payments set out in schedule 2, part B, table 1, row 3.
2:
3: Section 15(2) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 15(3) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008
16: Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D
1: Schedule 1 Table 1 Row ESCT rate threshold amount Tax rate 1 $0 – $16,800 0.125 2 $16,801 – $48,000 0.210 3 $48,001 upwards 0.330 How to use this table:Find the range in the second column for the last dollar of the amount of salary or wages under section RD 69(1), and apply the relevant rate in the third column.
2:
3: Section 16(2) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 16(3) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Amendments to Tax Administration Act 1994
17: Tax Administration Act 1994
Section 18 2008-10-01 Tax Administration Act 1994 2010-04-01 Tax Administration Act 1994
18: PAYE tax codes
1: Section 24B(3)﻿(c) to (e)
c: S
d: SH
e: ST .
2:
3: Section 18(2) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008 Section 18(3) repealed 15 December 2008 section 41 Taxation (Urgent Measures and Annual Rates) Act 2008
3: Annual rates, consequential personal tax cuts amendments, and remedial matters
Amendments to Income Tax Act 2007
19: Income Tax Act 2007
Sections 20 2008-04-01 Income Tax Act 2007 2008-05-29 Income Tax Act 2007 2008-07-01 Income Tax Act 2007 2008-10-01 Income Tax Act 2007 2009-04-01 Income Tax Act 2007
20: Charities: non-business income
1: In section CW 41(2) registered as a charitable entity a tax charity
2: After section CW 41(4) Definition
5: In this section and sections CW 42 and CW 43, tax charity
a: a trustee or trustees of a trust, a society, or an institution, registered as a charitable entity under the Charities Act 2005:
b: a trustee or trustee of a trust, a society, or an institution (the entity
i: has started, before 1 July 2008, to take reasonable steps in the process of preparing an application for registering the entity as a charitable entity under the Charities Act 2005; and
ii: intends to complete the process of preparing an application described in subparagraph (i)
iii: has not been notified by the Commissioner that the entity is not a tax charity:
c: a trustee or trustee of a trust, a society, or an institution, that is or are non-resident and carrying out its or their charitable purposes outside New Zealand, and which is approved as a tax charity by the Commissioner in circumstances where registration as a charitable entity under the Charities Act 2005 is unavailable.
3: In section CW 41 registered as a charitable entity tax charity
21: Charities: business income
1: In section CW 42(1)﻿(b) registered as a charitable entity a tax charity
2: In section CW 42 tax charity
22: Charitable bequests
1: In section CW 43(4) registered as a charitable entity a tax charity
2: In section CW 43(5) registered as a charitable entity a tax charity
3: In section CW 43(6) registered as a charitable entity a tax charity
4: In section CW 43 registered as a charitable entity tax charity
23: New section CW 55BA
After section CW 55
CW 55BA: Tertiary education institutions
An amount of income derived by a tertiary education institution that is established under Part 14 of the Education Act 1989 and is not carried on for the private pecuniary profit of any individual is exempt income. Defined in this Act: exempt income, income .
24: Heading and section LC 1 repealed
1: The heading before the heading to section LC 1
2: Subsection (1)
25: Section LC 2 repealed
1: Section LC 2
2: Subsection (1)
26: Child's income
1: In section LC 3
a: in subsection (3)﻿(a), $351 $321.75
b: in subsection (4), in the formula, 15 13.75
2: In section LC 3
a: in subsection (3)﻿(a), $321.75 $292.50
b: in subsection (4), in the formula, 13.75 12.5
3: Subsection (1)
4: Subsection (2)
27: Tax credits for absentees
1: In section LC 9(1)﻿(b) sections LC 2 sections LC 3
2: Subsection (1)
28: Adjustment for change in return date
1: In section LC 10(3)﻿(a) sections LC 1 sections LC 3
2: Subsection (1)
29: Adjustment when person is non-resident for part of tax year
1: In section LC 11(1)﻿(a) sections LC 1, LC 2, and section
2: Subsection (1)
30: Adjustment when person is non-resident
1: In section LC 12(1)﻿(a) sections LC 1, LC 2, and section
2: In section LC 12(3)﻿(c) LC 1, LC 2, or
3: Subsections (1) and (2)
31: Meaning of charitable or other public benefit gift
In section LD 3(2)
bb: a Board of Trustees that is constituted under Part 9 of the Education Act 1989 and is not carried on for the private pecuniary profit of any individual:
bc: a tertiary education institution that is established under Part 14 of the Education Act 1989 and is not carried on for the private pecuniary profit of any individual: .
32: Tax credits for supplementary dividends
1: In section LP 2(2) 7/10 7/17
2: Subsection (1)
33: New sections MF 4B and MF 4C
1: After section MF 4
MF 4B: Calculation of instalments: 1 April 2008 to 30 September 2008
When this section applies
1: This section applies for calculating the amount of an instalment by way of tax credit under section MD 1, or as applicable, sections MD 1 and ME 1 for the period starting on 1 April 2008 and finishing on 30 September 2008. Family tax credit formula: section MD 3
2: The instalments for the relevant tax credit are calculated using, for the calculation of the family tax credit prescribed amount × days 365. Definition of items in formula
3: The items in the formula are defined in subsections (4) and (5) Prescribed amount
4: Prescribed amount
a: for the eldest dependent child for whom the person is a principal caregiver during the entitlement period, 1 of the following, as applicable:
i: $4,264, if the child is younger than 16:
ii: $4,940, if the child is 16 or older:
iii: a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period; and
b: for each dependent child for whom the person is a principal caregiver during the entitlement period, other than the eldest dependent child, 1 of the following, as applicable:
i: $2,964, if the child is younger than 13:
ii: $3,380, if the child is 13, 14, or 15:
iii: $4,420, if the child is 16 or older:
iv: a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 13 during the entitlement period:
v: a weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the entitlement period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period. Days
5: Days When another person cares for dependent child
6: A family tax credit must be reduced in proportion to the time in the entitlement period that a dependent child spends in the exclusive care of another person who qualifies under section MC 2. Family credit abatement formula: section MD 13
7: The instalments for the relevant tax credit are calculated using, for the calculation of the family credit abatement full-year abatement × days 365. Definition of items in formula
8: In the formula,—
a: full-year abatement
i: if the person has no spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income for the relationship period containing the entitlement period is more than $35,000, 20 cents for each complete dollar of the excess; or
ii: if the person has a spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for the relationship period containing the entitlement period is more than $35,000, 20 cents for each complete dollar of the excess:
b: days When 56-day period includes 31 March
9: If a person who qualifies under section MC 2 (Who qualifies for entitlements under family scheme?) receives instalments of the parental tax credit in a 56-day period that includes 31 March, the formula is applied so that—
a: instalments of the parental tax credit received in the first tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year; and
b: instalments of the parental tax credit received in the second tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year. Relationship with subject matter
10: Sections MD 14 to MD 16, with necessary modifications, apply to the calculation of the family credit abatement subsection (7) Defined in this Act: amount, child, civil union partner, de facto partner, dependent child, entitlement period, family credit abatement, family scheme income, family tax credit, parental tax credit, principal caregiver, protected family tax credit, relationship period, spouse, tax year
MF 4C: Calculation of instalments: 1 October 2008 to 31 March 2009
When this section applies
1: This section applies for calculating the amount of an instalment by way of tax credit under section MD 1, or as applicable, sections MD 1 and ME 1 for the period starting on 1 October 2008 and finishing on 31 March 2009. Family tax credit formula: section MD 3
2: The instalments for the relevant tax credit are calculated using, for the calculation of the family tax credit prescribed amount × days 365. Definition of items in formula
3: The items in the formula are defined in subsections (4) and (5) Prescribed amount
4: Prescribed amount
a: for the eldest dependent child for whom the person is a principal caregiver during the entitlement period, 1 of the following, as applicable:
i: $4,487, if the child is younger than 16:
ii: $5,198, if the child is 16 or older:
iii: a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period; and
b: for each dependent child for whom the person is a principal caregiver during the entitlement period, other than the eldest dependent child, 1 of the following, as applicable:
i: $3,119, if the child is younger than 13:
ii: $3,557, if the child is 13, 14, or 15:
iii: $4,651, if the child is 16 or older:
iv: a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 13 during the entitlement period:
v: a weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the entitlement period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period. Days
5: Days When another person cares for dependent child
6: A family tax credit must be reduced in proportion to the time in the entitlement period that a dependent child spends in the exclusive care of another person who qualifies under section MC 2. Family credit abatement formula: section MD 13
7: The instalments for the relevant tax credit are calculated using, for the calculation of the family credit abatement full-year abatement × days 365. Definition of items in formula
8: In the formula,—
a: full-year abatement
i: if the person has no spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income for the relationship period containing the entitlement period is more than $36,827, 20 cents for each complete dollar of the excess; or
ii: if the person has a spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for the relationship period containing the entitlement period is more than $36,827, 20 cents for each complete dollar of the excess:
b: days When 56-day period includes 31 March
9: If a person who qualifies under section MC 2 (Who qualifies for entitlements under family scheme?) receives instalments of the parental tax credit in a 56-day period that includes 31 March, the formula is applied so that—
a: instalments of the parental tax credit received in the first tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year; and
b: instalments of the parental tax credit received in the second tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year. Relationship with subject matter
10: Sections MD 14 to MD 16, with necessary modifications, apply to the calculation of the family credit abatement subsection (7) Defined in this Act: amount, child, civil union partner, de facto partner, dependent child, entitlement period, family credit abatement, family scheme income, family tax credit, parental tax credit, principal caregiver, protected family tax credit, relationship period, spouse, tax year .
2: Subsection (1)
34: Meaning of net family scheme income
1: In section ME 3(3)﻿(c)﻿(i) ; and :
2: Subsection (1)
35: Orders in Council
In section MF 7(2)﻿(a) 1 April 2007 1 October 2008
36: Calculation of maximum permitted ratios
1: In section OA 18(3) corresponding to the tax year
2: Subsection (1)
37: Tax credits for non-resident investors
1: In sections OZ 12(2) treating 7/10 as 67/120 treating 7/17 as 67/187
2: In sections OZ 12(3) treating 7/10 as 67/120 treating 7/17 as 67/187
3: Subsections (1) and (2)
38: Payment dates for terminal tax
1: In section RA 13(1)﻿(b) December January
2: Subsection (1)
39: Methods for calculating provisional tax liability
In section RC 5(4) Section RZ 3 (Standard method: 2008–09 and 2009–10 income years) modifies subsection (3) Sections RZ 3 and RZ 5B (which relate to tax rate changes) modify subsections (2) and (3)
40: GST ratio method
In section RC 8(9) Section RZ 4 (GST method: 2008–09 and 2009–10 income years) modifies this section Sections RZ 4 and RZ 5C (which relate to tax rate changes) modify this section
41: Calculating amount of instalment under standard and estimation methods
In section RC 10
a: in subsection (3)﻿(a)﻿(i), section RZ 5 (Calculating amounts under standard method: 2008–09 and 2009–10 income years) sections RZ 5 and RZ 5B (which relate to tax rate changes)
b: in subsection (3)﻿(a)﻿(ii), section RZ 5 sections RZ 5 and RZ 5B
42: Calculating amount of instalment using GST ratio
In section RC 11(4) Section RZ 4 (GST method: 2008–09 and 2009–10 income years) modifies this section Sections RZ 4 and RZ 5C (which relate to tax rate changes) modify this section
43: Calculation of all-inclusive pay
1: In section RD 51(3)﻿(b)﻿(i) ; and :
2: In section RD 51(4)﻿(b)﻿(i) ; and :
3: Subsections (1) and (2)
44: Resident passive income
1: After section RE 2(5)﻿(b)
bb: a dividend from a portfolio investment entity: .
2: In section RE 2 portfolio investment entity
3: Subsections (1) and (2)
45: Dividends other than non-cash dividends
In section RE 13(3)﻿(a) schedule 1, part D, clause 6 schedule 1, part D, clause 5
46: Choosing higher rates
In section RE 19
a: in subsection (2), clause 2 clause 3
b: in subsection (3), clause 3 clause 4
47: New sections RZ 5B and RZ 5C
1: After section RZ 5
RZ 5B: Standard method: new personal tax rate persons from 1 October 2008 to end 2012–13 income year
When this section applies
1: This section applies for a new personal tax rate person to the calculation of their provisional tax liability from 1 October 2008 to the end of the 2012–13 income year. Standard method modified: RIT reduction from 1 October 2008 to end 2008–09
2: For the purpose of the person’s provisional tax liability calculation from 1 October to the end of the 2008–09 income year, under section RC 5(2) and (3), and RC 10(3)﻿(a)﻿(i) and (ii), the following amounts are reduced by $730:
a: the person’s residual income tax for the preceding tax year:
b: the person’s residual income tax for the tax year before the preceding tax year. Standard method modified: RIT reduction 2009–10
3: For the purpose of the person’s provisional tax liability calculation for the 2009–10 income year,––
a: under section RC 5(2) and RC 10(3)﻿(a)﻿(i), the amount of the person’s residual income tax for the preceding tax year is reduced by $730:
b: under section RC 5(3) and RC 10(3)﻿(a)﻿(ii), the amount of the person’s residual income tax for the tax year before the preceding tax year is reduced by $1,460. Standard method modified: RIT reduction 2010–11
4: For the purpose of the person’s provisional tax liability calculation for the 2010–11 income year,—
a: under section RC 5(2) and RC 10(3)﻿(a)﻿(i), the amount of the person’s residual income tax for the preceding tax year is reduced by $597.50:
b: under section RC 5(3) and RC 10(3)﻿(a)﻿(ii), the amount of the person’s residual income tax for the tax year before the preceding tax year is reduced by $1,327.50. Standard method modified: RIT reduction 2011–12
5: For the purpose of the person’s provisional tax liability calculation for the 2011–12 income year,—
a: under section RC 5(2) and RC 10(3)﻿(a)﻿(i), the amount of the person’s residual income tax for the preceding tax year is reduced by $812.50:
b: under section RC 5(3) and RC 10(3)﻿(a)﻿(ii), the amount of the person’s residual income tax for the tax year before the preceding tax year is reduced by $1,410. Standard method modified: RIT reduction 2012–13
6: For the purpose of the person’s provisional tax liability calculation for the 2012–13 income year, under section RC 5(3) and RC 10(3)﻿(a)﻿(ii), the amount of the person’s residual income tax for the tax year before the preceding tax year is reduced by $812.50. Defined in this Act: amount, income year, new personal tax rate person, provisional tax liability, residual income tax, tax year
RZ 5C: GST ratio method: new personal tax rate persons from 1 October 2008 to end 2013–14 income year
When this section applies
1: This section applies for a new personal tax rate person to the calculation of their provisional tax liability from 1 October 2008 to the end of the 2013–14 income year. GST method modified: RIT reduction from 1 October 2008 to end 2008–09
2: For the purposes of the person’s provisional tax liability and GST ratio calculation from 1 October 2008 to the end of the 2008–09 income year, under section RC 8(2) to (3B), and (7) to (7B), the following amounts are reduced by $730:
a: the person’s residual income tax for the preceding tax year:
b: the person’s income tax assessment or residual income tax for the tax year before the preceding tax year or the transitional year, as applicable:
c: the person's income tax assessment for the year that is 2 years before the preceding tax year or the transitional year, as applicable. GST method modified: RIT reduction 2009–10
3: For the purposes of the person’s provisional tax liability and GST ratio calculation for the 2009–10 income year,––
a: under section RC 8(2), the amount of the person’s residual income tax for the preceding tax year is reduced by $730:
b: under section RC 8(3) and (7), the amount of the person’s income tax assessment or residual income tax for the tax year before the preceding tax year or the transitional year, as applicable, is reduced by $1,460:
c: under section RC 8(3B) and (7B), the amount of the person’s income tax assessment for the year that is 2 years before the preceding tax year or the transitional year, as applicable, is reduced by $1,460. GST method modified: RIT reduction 2010–11
4: For the purposes of the person’s provisional tax liability and GST ratio calculation for the 2010–11 income year,—
a: under section RC 8(2), the amount of the person’s residual income tax for the preceding year is reduced by $597.50:
b: under section RC 8(3) and (7), the amount of the person’s income tax assessment or residual income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by $1,327.50:
c: under section RC 8(3B) and (7B), the amount of the person’s income tax assessment for the year that is 2 years before the preceding tax year or the transitional year, as applicable, is reduced by $2,057.50. GST method modified: RIT reduction 2011–12
5: For the purposes of the person’s provisional tax liability and GST ratio calculation for the 2011–12 income year,—
a: under section RC 8(2), the amount of the person’s residual income tax for the preceding year is reduced by $812.50:
b: under section RC 8(3) and (7), the amount of the person’s income tax assessment or residual income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by $1,410:
c: under section RC 8(3B) and (7B), the amount of the person’s income tax assessment for the year that is 2 years before the preceding tax year or the transitional year, as applicable, is reduced by $2,140. GST method modified: RIT reduction 2012–13
6: For the purposes of the person’s provisional tax liability calculation for the 2012–13 income year,—
a: under section RC 8(3) and (7), the amount of the person’s income tax assessment or residual income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by $812.50:
b: under section RC 8(3B) and (7B), the amount of the person’s income tax assessment for the year that is 2 years before the preceding tax year or the transitional year, as applicable, is reduced by $1,410. GST method modified: RIT reduction 2013–14
7: For the purposes of the person’s provisional tax liability calculation for the 2013–14 income year, under section RC 8(3B) and (7B), the amount of the person’s income tax assessment for the year that is 2 years before the preceding tax year or the transitional year, as applicable, is reduced by $812.50. Defined in this Act: amount, assessment, GST ratio, income tax, income year, new personal tax rate person, provisional tax liability, residual income tax, tax year, transitional year .
2: Subsection (1)
48: Definitions
1: This section amends section YA 1
2: After the definition of new asset new personal tax rate person .
3: In the definition of portfolio investor rate
a: in paragraph (a), 33% 30%
b: paragraph (b) is replaced by the following:
b: if paragraph (c) does not apply, the rate that an investor who has provided their tax file number to the entity under section 28B of the Tax Administration Act 1994 notifies—
i: to the entity as the prescribed investor rate for the investor and the period; and
ii: in the latest notice before the time; or .
4: The definition of registered as a charitable entity
5: After the definition of tax-base property tax charity .
6: Subsections (2) and (3)﻿(a)
49: Treatment of qualifying company election tax, FBT, FDP penalty tax, imputation penalty tax, and withdrawal tax
1: In section YA 3(2)﻿(i) LC 1 LC 3
2: Subsection (1)
50: Schedule 1–Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
1: Schedule 1
2: In schedule 1
a: in row 2, $9,501 $11,401
b: in row 3, $45,600 $45,601
c: in the table instructions, RD 69(2) RD 69(1)
3: In schedule 1 If clause 5 does not apply If clause 4 does not apply
4: In schedule 1 1 and 2 1, 2, and 3
51: Schedule 4—Rates of tax for schedular payments: part I
In schedule 4 0.15 0.125
52: Schedule 31—Annualised equivalent amount for Part M
In schedule 31
a: in columns 1 and 2, in the first row under the heading, $35,000 $36,827
b: in column 1, in the second row under the heading, Amount exceeds $35,000 but does not exceed $36,500 Amount exceeds $36,827 but does not exceed $38,000
c: in column 2, in the second row under the heading, $36,500 $38,000
d: in columns 1 and 2, the third row under the heading is omitted. Amendments to Tax Administration Act 1994
53: Tax Administration Act 1994
Sections 54 Tax Administration Act 1994 2008-04-01 Tax Administration Act 1994 2008-05-29 Tax Administration Act 1994 2008-07-01 Tax Administration Act 1994
54: Portfolio tax rate entity to give statement to investors and request information
After section 31B(4)
5: A portfolio tax rate entity must, as soon as practicable after an investor joins, give a notice to the investor requesting that the investor provide the entity with the investor's tax file number.
55: Applications for RWT exemption certificates
After section 32E(2)﻿(k)
kb: a Board of Trustees that is constituted under Part 9 of the Education Act 1989 and is not carried on for the private pecuniary profit of any individual:
kc: a tertiary education institution that is established under Part 14 of the Education Act 1989 and is not carried on for the private pecuniary profit of any individual: .
56: Annual returns of income not required
In section 33A(1)﻿(b)
a: in subparagraph (iv)﻿(A), table 1 table 2
b: in subparagraph (iv)﻿(B), table 1 table 2 Amendments to Estate and Gift Duties Act 1968
57: Estate and Gift Duties Act 1968
1: This section amends the Estate and Gift Duties Act 1968
2: In section 73(1) registered as a charitable entity under the Charities Act 2005 a tax charity
3: After section 73(2)﻿(j)
jb: any gift to a Board of Trustees that is constituted under Part 9 of the Education Act 1989 and is not carried on for the private pecuniary profit of any individual:
jc: any gift to a tertiary education institution that is established under Part 14 of the Education Act 1989 and is not carried on for the private pecuniary profit of any individual: . 2008-07-01 Estate and Gift Duties Act 1968 Amendment to KiwiSaver Act 2006
58: KiwiSaver Act 2006
1: This section amends the KiwiSaver Act 2006
2: In section 4(1) salary or wages
ib: allowances paid in place of a benefit under section CE 1(c) of that Act; and . 2008-04-01 KiwiSaver Act 2006 Amendment to Taxation (KiwiSaver) Act 2007
59: Taxation (KiwiSaver) Act 2007
1: This section changes the effect of the Taxation (KiwiSaver) Act 2007
2: The reference to section 94 section 2(7) section 2(8) 2007-12-19 Taxation (KiwiSaver) Act 2007 Amendment to Taxation (Business Taxation and Remedial Matters) Act 2007
60: Taxation (Business Taxation and Remedial Matters) Act 2007
1: This section changes the effect of the Taxation (Business Taxation and Remedial Matters) Act 2007
2: The reference to section 554(3) section 2(21) section 2(20) 2007-12-19 Taxation (Business Taxation and Remedial Matters) Act 2007 Annual rates of income tax for 2008–09 tax year Heading repealed 1 April 2009 section 29(2) Taxation (Urgent Measures and Annual Rates) Act 2008
61: Rates of income tax for 2008–09 tax year
2008-05-29 Taxation (Annual Rates of Income Tax 2007–08) Act 2007 Section 61 repealed 1 April 2009 section 29(2) Taxation (Urgent Measures and Annual Rates) Act 2008