New Zealand Tax Agency Clarifies Provisional Tax for One-Off Wage Earners Without Deductions

The New Zealand Inland Revenue April 28 issued Question No. QB 23/05, and accompanying Fact Sheet QB 23/05 FS, clarifying the provisional tax rules for one-off wage earners without tax deducted at the source. Topics covered include: 1) clarification on the provisional tax implications for individuals with residual income tax (RIT) above NZ$5,000 (US$3,089) subject to pay-as-you-earn (PAYE); 2) clarification on the application of the rules when the RIT is above or below NZ$60,000 (US$37,073); 3) provide a procedure to include one-off income in the income tax return; and 4) clarify obligations of taxpayers in the following year when the ...