The next provisional tax instalment date is 28 November 2024.
Provisional taxpayers with the below balance dates may have a tax instalment due on 28 November 2024:
- Taxpayers with a 30 June balance date will generally have their first provisional tax instalment due for the 2025 tax year.
- Taxpayers with a 28 February balance date will generally have their second provisional tax instalment due for the 2025 tax year.
- Taxpayers with a 31 October balance date will generally have their third provisional tax instalment due for the 2024 tax year.
Tax audit process and remediation workshops
We are thrilled to invite you to our upcoming tax pooling workshop series, where we will cover essential strategies for tax audit preparation and explore the advantages of tax pooling as a remediation tool.
Join us at one of the following locations:
- Auckland: Friday, 29 November 2024, from 2pm to 4pm at PwC, Level 27, 15 Customs Street West, Auckland.
- Wellington: Thursday, 21 November 2024, from 2pm to 4pm at PwC Centre, Level 4, 10 Waterloo Quay, Wellington.
- Christchurch: Monday, 25 November 2024, from 2pm to 4pm at PwC Centre, Level 3, 60 Cashel Street, Christchurch.
We encourage you to forward this invitation to colleagues or clients who may benefit from this valuable information. Click here to RSVP or scan the QR code below.
Trustee income tax rates
IRD has increased their focus on Trusts in 2024. From 1 April 2024, trusts and estates are subject to varying tax rates on any income that is not distributed to beneficiaries, based on their individual circumstances. Previously, such income was taxed at a flat rate of 33%.
Trusts must pay tax on any income that is not distributed to beneficiaries. For income up to $10,000 in a tax year, the rate is 33%. For income exceeding $10,000, the tax rate is 39%. Exceptions to the 39% tax rate may apply in the following circumstances:
- The estate of someone who has died: Income earned by an estate while being wound up is taxed at 33% for the year of death and the next three years, after which it is taxed as trust income.
- Disabled beneficiary trusts: If you settled your trust to care for disabled beneficiaries, then it will pay tax at the 33% rate, no matter how much income it earns. Please refer to this article for the definition of a ‘disabled beneficiary’.
- Energy consumer trusts: these trusts are taxed at the 33% tax rate.
- Legacy superannuation funds: Some superannuation funds pay tax at a 28% tax rate.
For more information on trustee income tax rates, please refer to this article published by Inland Revenue or get in touch and we can refer you to a specialist.
Tax pooling deadlines for transferring tax to IRD
Taxpayers with a 31 October balance date and no Extension of Time for the 2024 income tax year (year ending 31 October 2023) will need to have all required purchased and financed tax transferred out of the tax pool and into all taxpayer IRD income tax accounts before 23 November 2024.
Get in touch with the Tax Pooling Solutions team if you require any last minute purchases.
The TPS team is taking a break over the holiday period. We will be out of the office from Monday 23 December 2024 until Thursday 9 January 2024.
