TAX TIDBITS
Issue Twenty-two, April 2008
In this months issue:
Applying for an IRD Number
Changes to the Company Tax Rate
Applying for an IRD Number
The process for applying for a personal IRD number has changed. Now, applicants must complete an IRD Number application form (IR595) and present it with specified documents to either the AA Driver Licensing Agents or selected NZ Post retailers.
The specified documents include an original document from category A and an original document from category B. Both the original and a photocopy of the documents must be presented. There is no longer a separate form if you are applying for an IRD number for a child.
Category A
New Zealand Passport
Overseas Passport
New Zealand emergency travel document
New Zealand firearm or dealers licence
New Zealand refugee travel document
New Zealand certificate of identity
New Zealand citizenship certificate
Category B
New Zealand drivers licence
New Zealand 18+ card
New Zealand student photo ID
A letter confirming registration as a student in NZ
An “offer of employment” letter from your employer, on company letterhead
Changes to the Company Tax Rate
Company tax will reduce to 30% for the 2008-09 tax year. This affects provisional tax calculations and imputation credits.
When calculating provisional tax under the standard option for the 2008-09, instead of multiplying the 2007-08 RIT by 105%, the multiplier will be 95%. If calculating provisional tax using the 2006-07 RIT, the multiplier will be reduced from 110% to 100%.
The IRD is currently updating Provisional Tax Guide (IR289) which will be available soon. If you have any questions, contact your advisor.
Breakfast Seminar
The next HWI Seminar is on Business Development - Strategies to help add value to your business.
Wednesday 18th June 2008 at 9am (2 hours). Email maldridge@hwi.co.nz for details or book online at www.hwi.co.nz under the heading SEMINARS
Disclaimer Information contained within this document is of a general nature and does not constitute advice. Readers are cautioned not to act or reply on it without first seeking professional advice.
