Important Deadline: Tax Returns Due by 7 July

 

Ensure timely filing of your income tax returns by the deadline of 7 July. Discover essential information regarding the following:

1. How to File Your Tax Return

Learn the convenient method of filing your income tax return online using myIR. By visiting the Inland Revenue website, you can register for a myIR account, enabling you to swiftly complete your filing process. When filing online through myIR, relevant details already possessed by Inland Revenue will be pre-populated, and you will receive immediate confirmation upon submission.

For online income tax return filing, visit Inland Revenue’s website before 7 July.

2. Wage and Subsidy Payments Received

If you received wage subsidy, leave subsidy, or short-term absence payment during the 2023 tax year, it is crucial to declare this taxable income in your tax return. This includes payments received through associated entities like companies, partnerships, or trusts. Filing your return through myIR simplifies the process as wage and leave subsidies received will automatically appear in the “Government subsidies” section, requiring only verification for accuracy.

For employers whose employees received wage and subsidy support payments with tax deducted at the time, no action is needed.

For more information on wage subsidy and leave support payments for employers, refer to Inland Revenue’s website.

3. Resurgence Support Payment (RSP) or COVID-19 Support Payment (CSP)

Please note that RSP and CSP, designed to assist with business expenses, should not be considered as income when filing your tax return. You cannot claim deductions for these expenses, and your overall expenses should be reduced by the total amounts received as RSP and CSP.

In case you haven’t utilized the RSP or CSP for business expenses, it might be necessary to repay these payments. Detailed instructions regarding the repayment process can be found on our website.

For GST-registered businesses, the RSP or CSP should be included as GST income, and you can claim GST for items purchased using these payments.

Access more information about COVID-19 Resurgence Support Payment (RSP) on Inland Revenue’s website.

Learn about the COVID-19 Support Payment (CSP) on Inland Revenue’s website.

4. Mortgage Interest Claim for Residential Rental Properties

It’s important to understand that residential rental properties are subject to interest limitation rules, unless specific exclusions or exemptions apply.

If you acquired a residential rental property before 27 March 2021, the ability to claim mortgage interest as an expense is being phased out gradually from 1 October 2021 to 31 March 2025.

However, for residential rental properties acquired on or after 27 March 2021, no mortgage interest can be claimed starting from 1 October 2021.

For comprehensive information regarding property interest limitation rules, consult the dedicated page on Inland Revenue’s website.

5. Reporting Requirements for Trusts

Since 2022, the annual reporting requirements for New Zealand domestic trusts have been modified. Most trusts now need to provide additional information in their tax returns.

Stay informed about these changes and ensure compliance with the new reporting obligations for trusts.

For further details on the updated reporting requirements for trusts, refer to Inland Revenue’s website.

By addressing these crucial aspects, you can confidently fulfill your tax obligations before the upcoming deadline. Act promptly to avoid any potential penalties or inconveniences. For more information and resources, visit Inland Revenue’s website or reach out to our support team.

 

Your Outside Team