Taxing Matters – October 2012

Taxing matters provides a summary of topical tax information relating to individual tax and business taxation.

Parental Leave Payment
Eligible employees or self-employed persons taking parental leave are entitled to the parental leave payment paid by the government. The payments are for a maximum of 14 weeks; the maximum payment is $475.16 a week before tax.

Individual Tax Rates
The individual tax rates for the current tax year (1 April 2012 to 31 March 2013) are income up to $14,000 – 10.5 %, 14,001to $48,000 – 17.5%, $48,001 to $70,000 – 30% and $70,001 and over 33%.

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Independent Earner Tax Credit
An individual who is a New Zealand tax resident and earns annual income between $24,000 and $48,000 may be entitled to receive the Independent earner tax credit (IETC). The maximum credit available is $520.  The IETC is not available to an individual if they or their partner are entitled to Working for Families tax credits or if the individual receives NZ Superannuation.

Deductibility of Legal Fees for Buying and Selling Rental Property
From 1 April 2009 legal fees for buying and selling a rental property can be deducted for tax purposes provided total legal expenses for an income year (1 April to 31 March), including the fees associated with buying and selling a rental property  are $10,000 or less.

2017-12-20T10:22:03+00:00October 24th, 2012|Tax|