New Zealand: Proposal for an individual tax rate of 39%

New Zealand: Proposal for an individual tax rate of 39%

The government on 2 December 2020 introduced, under Parliamentary urgency, legislation that would provide a new 39% individual (personal) tax rate on income above $180,000.*

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As proposed, the new rate would apply from 1 April 2021 (that is, for the 2021-22 income year).

The legislation also contains a number of related or consequential amendments, including to proposals concerning the fringe benefit tax, employer superannuation contribution tax, resident withholding tax on interest, and residential land withholding tax rates.

The company and trust rates would remain unchanged, but there would be new information disclosure requirements for trusts (with penalties for non-compliance).

Read a December 2020 report prepared by the KPMG member firm in New Zealand


*$=New Zealand dollar

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