Latest proposed Tax changes announced 1st December 2020
On 1 December 2020, the government introduced the Taxation (Income Tax Rate and Other Amendments) Bill (2-1) into Parliament.
This bill is primarily to introduce the new top personal tax rate of 39% on annual income that exceeds $180,000.
The rate will apply from the 2021-22 tax year.
The bill also introduces extensive information gathering powers in relation to trusts.
From the 2021-22 tax year it is proposed that trusts include additional information in their annual tax return such as:
The amount and nature of any new settlement on the trust
The name, date of birth, tax residence and tax number of any person making a settlement
The amount of any distribution made by the trust during the year (capital as well as income distributions)
The name, date of birth, tax residence and tax number of any person receiving a distribution
The name, date of birth, tax residence and tax number of any person with the power to appoint or dismiss a trustee, add or remove a beneficiary, or to amend the trust deed
In addition it is proposed that the IRD will have the power to request the information for the previous 7 years.
The bill can be read here: