In December 2020, the NZ Government passed legislation to implement a new personal tax rate of 39% for those with personal incomes above $180,000. This new rate comes into effect from 1 April 2021 (the 2021-2022 income year).
What you should know
As with any changes in tax, there are knock-on effects that you should know about. These include:
New Fringe Benefit Tax rate of 63.93% for all-inclusive pay of more than $129,681
Employer Superannuation Contribution Tax rate of 39% on superannuation contributions for employees whose income from employment and from employer Kiwisaver contributions exceed $216,000 per annum.
39% Resident Withholding Tax rate for individuals on interest income
39% Residential Land Withholding Tax Rate on residential land sales by offshore persons within the bright-line period
39% non-declaration rate of taxable Māori authority distribution, where a member has not provided an IRD number
Meanwhile, there are no changes to PIE tax rates for individual investors or to Resident Withholding Tax on dividends.
Actions you should take