Car Allowance New Zealand Tax

The car allowance will also be taxable depending on how this is paid to you so in my view you are better just getting the full salary.

Car allowance new zealand tax. The new rules were developed after significant consultation both leading up to the release of the november 2012 issues paper reviewing the tax treatment of employee allowances and other expenditure payments and subsequently. I am sales rep and currently have a kia sportage 2ltr as a company car with full personal use outside business. It is up for renewal and the company has given me the option of a replacement of the kia or a vehicle allowance. It can depend on how the car allowance works however.

A total of 27 submissions were received on the suggestions in the officials issues paper. New zealand tax rates have varied over the past few decades. An employer should also check with inland revenue external link on the payment of allowances and which ones are taxable and non taxable. 64 4 560 9199.

Currently new zealanders pay 10 5 tax on the first 14 000 of income and a maximum of 33. New zealand s tax system is fair and has few loopholes ways to avoid paying tax. Tax free allowances include accommodation payments to employees who are. Forum fuel and economy car allowances by richseay aa member 3 posts 17 june 2013 at 2 41pm i have lost my company car and now am being offered a car allowance they still pay the fuel is this allowance tax free in my hands does anyone know this.

Income tax in new zealand comes with few deductions. Call us toll free nz only. This is the lowest overall rate for over twenty years. In 2019 the us based tax foundation ranked new zealand s overall tax system as second in the developed world for competitiveness and fourth for individual personal taxes.

Current lease is through fleet lease 3yr 75k. If you are paid in new zealand and live here then new zealand tax will apply. Readers will recall from previous alerts that there have been changes to the tax treatment of employee allowances and payments towards the costs of accommodation and meals. The top rate of tax has remained below 40.

0800 10 10 38 international. Generally if you provide accommodation or an accommodation allowance to an employee it s taxable via paye but tax isn t paid on all accommodation allowances. These rules generally apply from 1 april 2015 as a result of the taxation annual rates employee allowances and remedial matters act 2014. Our tax environment is also good for your earnings and assets.

Seems a grey area and right now i am paying tax on it which diminishes its value somewhat.