Recently, following the Budget 2023 announcements, New Zealand’s government tabled two tax bills: The Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill (hereinafter, the “May 2023 Tax Bill”) and The Taxation Principles Reporting Bill.
In this GMS Flash Alert, we will focus on the proposed changes to the taxation of trusts in the May 2023 Tax Bill. The May 2023 Tax Bill also includes a number of minor changes which will affect both individuals and employers including the introduction of a three-percent “employer” contribution to KiwiSaver on Paid Parental Leave payments, a change in the calculation of extra pays on termination of employment, and taxation of individuals who acquired New Zealand financial arrangements while nonresident.1