Redundancy Tax Credit

A tax credit for being made redundant has been available from 1 December 2006. Qualifying employees receive a tax credit of 6 cents in the dollar on qualifying payments up to a maximum claim of $3,600 per redundancy (covers a redundancy payment of $60,000, the maximum to which a credit can be applied).

Employees can generally claim a tax credit if their employment was terminated because their position was surplus to the employer’s requirements, and the redundancy payment compensated the employee for their loss of employment.

To apply for a redundancy tax credit an IR524 form should be completed, this can be completed and submitted to the IRD at anytime.

2012-04-01T09:00:02+00:00April 1st, 2012|Tax|