Provisional & Income Tax Payments – March Balance Date without EOT

January 15th:	Provisional tax second instalment
February 7th:	Terminal tax payment (if any)
May 7th:	Provisional tax third instalment
July 7th:	IR3 return due to be filed
August 28th:	Provisional tax first instalment

GST Due Dates

March Balance dates – Two Monthly GST

January 15th:	GST return and payment for the period ended November
February 28th:	GST return and payment for the period ended January
May 7th:	GST return and payment for the period ended March
June 28th:	GST return and payment for the period ended May
July 7th:	IR3 return due to be filed
August 28th:	GST return and payment for the period ended July
October 28th:	GST return and payment for the period ended September

March Balance dates – Six Monthly GST

May 7th:	GST return and payment for the period ended March
October 28th:	GST return and payment for the period ended September

PAYE 

PAYE – for employers deducting less than $500,000 in PAYE

PAYE payment and employer monthly schedule due on the 20th of the following month

Fringe benefit tax (FBT) – filled quarterly

January 20th:	FBT quarterly return and payment for period October to December
May 31st:	FBT quarterly return and payment for period January to March
July 20th:	FBT quarterly return and payment for period April to June
October 20th:	FBT quarterly return and payment for period July to September

If you are operating an Uber or a Rideshare business, you need to be aware of your tax obligations under the Income Tax Act 2007.

Income Tax

Like any other independent contractor you are liable for income tax on your profits. Uber and other rideshare companies do not deduct and pay income tax on your behalf therefore you might have a large tax bill at the end of the financial year. You are required to file an individual income tax return (IR3) with IRD, outlining your income and all expenses. For these reasons it may be best to take professional advice even before the end of the financial year.

GST

You only need to register for GST if your gross revenue/turnover is over $60,000 per year, or your prices include GST. However you may register for GST voluntarily. This can be useful in situations where your business is operating at a loss.

According to Uber because of new GST rules effective 1 October 2016, Uber is required to charge an additional 15% GST on the Service Fee to non-GST registered partners. This is why the Service Fee percentage is 28% for non-GST registered partners and 25% for GST registered partners. The advantage is that if you are not GST registered, you will not need to remit 15% GST on your gross trip fares to the IRD

Not sure if you need to register for GST or need to file your tax returns, contact us.

The Taxation Act 2006 introduced a tax exemption for transitional residents. The exemption is available to people coming to live in New Zealand on or after 1 April 2006 for the first time or after an extended absence. It lasts for four years after migration and covers most types of foreign income.

Available to

People becoming tax residents in New Zealand on or after 1 April 2016 and are new migrants or returning New Zealanders who have not been resident for tax purposes in New Zealand for at least 10 years prior to qualifying as a tax resident in New Zealand may qualify for a temporary tax exemption on some of their foreign income.

Features of the Temporary tax exemption

• The temporary tax exemption for foreign income is for 4 calendar years (up to 49 months). The exemption starts on the first calendar day of the month you qualify as a tax resident in New Zealand and ends on the last calendar day of that month four years later.
• The exemption can only be granted once in a lifetime.

Types of exempt foreign income

The following types of foreign income are temporarily exempt from tax in New Zealand.

• Controlled foreign company (CFC) income that is attributed under New Zealand’s controlled foreign company (CFC) rules.
• Foreign investment fund income that is attributed under New Zealand’s foreign investment fund (FIF) rules (including foreign superannuation).
• Foreign income subject to non-resident withholding tax (for example on foreign mortgages).
• Foreign income subject to approved issuer levy (for example on foreign mortgages).
• Income arising from the exercise of foreign employee share options.
• Accrual income (from foreign financial arrangements).
• Income from foreign trusts.
• Rental income derived offshore.
• Foreign dividends.
• Foreign interest.
• Royalties derived offshore.
• Income from employment performed overseas before coming to New Zealand, such as bonus payments.
• Gains on sale of property derived offshore (held on revenue account).
• Offshore business income (that is not related to the performance of services).
• When your tax exemption ends after 4 years (up to 49 months), you must declare all foreign income on your annual income tax return (IR3 for individuals).

Foreign income that is not tax-exempt

Not all types of income are exempt under these rules. Employment income from overseas employment performed while living in New Zealand or Business income relating to services performed offshore is taxable and must be declared on your IR3 Tax Return.

• Are you a small business owner?
• Do you have to invoice on the go?
• Do you have limited time to do your books?

If any of the above is true for you then Xero might be for you.

Xero is a cloud accounting software which is designed to make small business accounting easier. It is built with the user in mind. While other software’s tend to be more “accountants” software they normally lack the user friendly features which Xero seamlessly incorporates. Suddenly Xero makes sense of all the numbers from a user’s perspective. You don’t have to be an accountant to be able to use Xero, it is so simple that anyone who knows how to use apps on a mobile phone or anyone who can use emails on a pc can use Xero.

So how exactly does Xero make life easier?

The main features of Xero are:

Automated Bank Feeds: Xero links to your bank account and hence receives your bank statement lines automatically. You can reconcile from anywhere – even from bed with our mobile app.

Online Invoicing: Connect seamlessly with customers through online invoicing and receive updates when an invoice is opened. Create professional recurring invoices and schedule bill payments.

Xero can even follow up overdue invoices automatically through its invoice reminder feature.

Payroll: PAYE tax rates are updated automatically and superannuation is a breeze. Leave management and the employee portal provide a complete picture of your payroll.

Mobile Access: Run your business anywhere, from any device. Check balances, upload receipts and invoice customers while you’re at lunch. Run your business and access your accounts from work, home, or on the go.

Free & Automatic updates: Software updates are automatic and seamless. Every 3–6 weeks we release innovative new features and enhancements based on ideas from our customers.

Unlimited users: Add as many users as you want – it’s free. Work together as a team on financials. Collaborate online with your accountant and bookkeeper to get the advice you need. Invite an unlimited number of people for free.

700+ add-on applications: You’re spoilt for choice with applications like inventory, invoicing, time tracking and expenses. They integrate with Xero to save your business time and money.

Thinking of switching to Xero?

Elite Accounting is a Xero Partner. We provide Xero Setup and Staff Training. We can also takecare of all you bookkeeping and accounting needs.

​Crypto currencies such as Bitcoin and Ethereum have been really popular investment options in recent times. Their value has surged which has lead to exponential gains for investors and it might be easily forgotten that while even though un-regulated Crypto currencies are still taxable.

IRD has recently released guidance around taxing crypto currencies. According to the IRD Crypto currencies are treated like property for tax purposes. Although trading in crypto currencies may happen in a digital realm but tax obligations still apply in New Zealand.

Just like with property when you acquire crypto currency for the purpose of selling or exchanging it, the proceeds you make from selling it are taxable. Tax is also applied when one crypto currency is swapped for another. You don’t need to cash out to dollars to create a tax obligation. Likewise, if you receive a crypto currency as payment for goods or services, this is considered business income and is taxable. Tax rules for foreign exchange don’t apply when it comes to crypto currencies.

Dealing with Crypto Currencies and still not sure of your obligations? Contact us for more guidance.