If your business received the Covid-19 Resurgence Support Payment (RSP) these funds must have been used to cover business-related expenses, such as wages and fixed costs. It is not subject to income tax, and the expenses funded by the RSP are not deductible. For GST-registered businesses, the RSP is subject to GST and needs to be included in your GST return. This treatment is different from the wage subsidy.

Tax refunds can now be transferred to offset Small Business Cashflow Scheme (SBCS) loan balances. Tax credit transfers into a SBCS account are by request only, which can be made via the ‘Financial transfer’ service in the myIR online portal, messaging in myIR or phoning the IRD. It is possible to make partial transfers of tax credits, as well as transfer the refund to another customer’s SBCS account.

The IRD has launched a new campaign targeting the real estate industry. This is based on their belief that real estate agents are claiming a high level of expenses relative to their income and that personal expenditure is involved.

On 1st April 2021 the minimum wage was increased from $18.90 to $20.00 per hour.

From 1st April 2021, a new top tax rate of 39% will be applied to individuals earning over $180,000 per annum. The annual income threshold of over $180,000 includes bonus payments, back pays and redundancy payments.

IRD is currently working through 2021 individual income tax assessments based on wage/salary information, interest earnings data and dividend earnings data. Note that everyone is required to confirm their income information with IRD, which can be done via myIR. IRD will automatically assess if the information is not confirmed by the due date. However, this does not mean it is a final assessment if not all income is included. Tax payers may receive a refund based on an automatic assessment and be charged use of money interest if they then have to return the refund so it is important to see a tax agent or contact IRD as soon as possible where this assessment is not correct.