We can appreciate it has been a tough start to the year for many businesses.
The cost of living is high, and many are feeling the pinch of this. We can hope the rest of the year brings more positive activity for everyone.
Questionnaires:
We will be sending out the 2024 Client Questionnaires this week.
Tax payments:
Some upcoming dates to note:
7th May 2024 - Final 2024 provisional tax instalment for provisional tax paying individuals and trading entities with a March balance date.
7th May 2024 - GST for all periods ending 31 March 2023 for GST registered entities (1, 2 and 6 monthly filing periods).
You might also have received a Tax Payment notice for your 2023 Terminal Tax from us in March. The payment due date for this was 8th April 2024.
Please contact us with any concerns about this tax payment.
Trust tax rate changes: The trustee tax rate in trusts has increased from 33% to 39% effective 1st April 2024. The 39% tax rate applies to amounts retained as trustee income and not allocated to individual beneficiaries.
Where income is allocated to beneficiaries, their individual tax rates apply. Most trusts have the ability to allocate income to beneficiaries. However, where beneficiaries’ individual income exceeds $180,000, income is taxed at 39%.
The Bill also applies to estates. However, estates are exempt from the 39% rate for 12 months from the date of death. During the 12-month period, the estate will be taxed at the personal tax rate of the deceased person. Another special rule in the Bill applies to Trusts settled for the care of a disabled person.
These Trusts will be taxed at the personal tax rate of the disabled beneficiary. If you are concerned about the trust tax rate changes, please contact us as we can work through the changes with you.
Please get in touch if there is anything we can assist with.
Michael, Anna, and the team Michael.Paton@naca.co.nz - 021595811 Anna.Paton@naca.co.nz - 021595112 www.nightingalepaton.co.nz
Comments