Taxing Matters: June / July 2014

Service graphic_corporate tax_1_RGBTaxing Matters provides a summary of topical tax and business information relating to individuals and business.

Deductibility for Clothing   The IRD will permit a deduction for ‘distinctive work clothing’, defined as items which form part of uniform that is identifiable with the employer because of logos or the pattern, colour scheme or style. A deduction cannot be claimed for work jeans, work boots and so on because they do not meet the definition of ‘distinctive work clothing’.

Prescribed Investor Rate of Tax   The prescribed investor rate (PIR) is the rate of tax used by an investor when investing in portfolio investment entities (PIEs).  All KiwiSaver investments are PIEs.  A PIR rate is determined by looking at an investor’s taxable income over the previous two years, therefore for investors who have completed a 2014 income tax return the PIR will be determined by looking at their taxable income for the 2013 and 2014 income tax years.  It is recommended that as investors complete their 2014 income tax returns, they check they are using the correct PIR for their PIE investments.  There are three PIRs for individuals: 10.5%, 17.5% and 28%.

2014 Tax Return Filing Dates   2014 income tax returns are required to be filed by 7th July 2014 unless a tax agent is used to prepare and file returns, in which case the filing deadline for 2014 income tax returns is 31st March 2015.  Tax returns that are filed after the due date will incur a late filing penalty of either $50, $250 or $500; the amount of the penalty depends on the level of net income.

Depreciation on  iPads, iPods and Mobile Phones   The IRD’s depreciation rates for iPads, iPods and mobile phones is 67% per year.  This rate applies regardless of whether the DV or SL method of depreciation is used.

2014-07-08T13:41:27+00:00July 8th, 2014|Accounting, Tax|

Facebook

Twitter

LinkedId