Hargreaves & Felton, business advisors, accounting, taxation specialists, Christchurch

Recent Developments

Changes to RWT, PIEs and secondary tax rates for Individuals

The Taxation (consequential Rate Alignment and Remedial Matters) Act 2009 introduces changes to align RWT rates on interest with recent changes to personal tax rates and the company tax rate, and alignment of PIE tax rates with personal tax rates. Secondary tax rates are also changing.

These changes will take affect 1 April 2010

RWT (resident withholding tax)

Income Threshold	Current RWT Rate	New RWT Rate
$0 - $14,000	19.5%	12.5%
$14,001 - $48,000	19.5%	21%
$48,001 - $70,000	33%	33%
$70,001 and over	38% or 39%	38%
No-notification rate	38% or 39%	38%

PIE Changes

To work out your PIR for the 2011 income year you need to use your taxable income from either of the two previous income years.

Taxable Income	Taxable Income plus PIE Income/Loss	PIR
$0 - $14,000	$0 - $48,000	12.5%
	$48,001 - $70,000	21%
	$70,001 or more	30%
$14,001 - $48,000	$0 - $70,000	21%
	$70,001 or more	30%
$48,001 and over	Any amount	30%

Secondary Tax Rates

	Current Rates			New Rates
Income Thresholds	Rates	Tax Code		Rates	Tax Code
			student loan			student loan
$0 - $14,000	21%	S	S SL	12.5%	SB
$14,001 - $48,000	21%	S	S SL	21%	S	S SL
$48,001 - $70,000	33%	SH	SH SL	33%	SH	SH SL
$70,001 and over	38%	ST	ST SL	38%	ST	St SL

The above information has been extracted from the IRD website as at 12 March 2010. Please refer to the IRD website for further information.