Tuesday, February 28, 2017
A Bill including provisions to simplify New Zealand's tax processes, reduce compliance costs for smaller businesses, and tighten foreign trust disclosure rules received Royal Assent on February 21.
The measures were included in The Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill, which was introduced to Parliament on August 8, 2016.
The legislation will provide a new pay-as-you-go option for small businesses to pay their provisional tax from April 1, 2018.
The Bill will also remove the one percent monthly incremental late payment penalty on new GST, income tax, and the Working for Families tax credit debts from April 1, 2017. It also includes measures to further strengthen and update New Zealand's international tax rules with new disclosure requirements for foreign trusts. It includes provisions for a register searchable by Internal Affairs and the Police, as well as annual disclosure requirements.
Finally, the Bill includes provisions to introduce requirements for financial institutions to comply with the OECD's Common Reporting Standard for the automatic exchange of information.
The legislation has been published on the New Zealand legislation website.