- increasing knowledge
Our team converses in accounting language everyday. You may find it of
some benefit to have a base knowledge of accounting terms. Our information
library is not a depth discussion of each topic, and we suggest that you meet
with our team to discuss any individual issues or requirements you may have.
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Fringe Benefit Tax (FBT) |
Tax on benefits received by employees due to their employment, such as motor vehicle, goods and services at a lower or nil value, low interest loans, and employer contributions to employee's insurance policies and schemes, for sickness, accident or death, employee entertainment and private telephone calls. To download IRD's
guide click the following link (you will require adobe acrobat).
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Gift Duty |
Duty imposed for total gifts made in excess of $27,000.00 per annum per person. In each 12 month period, a person can make a gifts with a total value $27,000 without liability to pay gift duty. A gift statement must be completed and filed with the Inland Revenue Department if the gifts are over $12,000. For calculations of gift duty, contact us or visit the IRD website.
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Goods and Services Tax (GST) |
Tax on the supply of goods and services, on taxable activities. The rate is 12.5%.
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GST Registration |
A person or business carrying on taxable activity must be registered if the annual turnover of the business for a 12-month period is more than $40,000.
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GST payments |
A turnover of more than $250,000 in a 12 month period requires GST returns to be filed every month or every two months. We will account for GST on Invoice or Payment basis. A turnover of more than $1,300,000 in a 12 month period demands invoice basis.
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PAYE |
Employees salary or wages are taxed, and paid as they earn their remuneration - pay as you earn. We calculate the amount of PAYE based on each individuals tax code. At commencement of employment have your employee complete a tax code declaration, and until they have done so, you will deduct PAYE at the no-declaration rate. Each month you will file details of gross salary and wages and the deductions you have made. See important dates to determine when these are required to be filed.
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Provisional Tax |
As income is received through the year, instalments of income tax are paid, based on expectations for the year. The provisional payments is then dedcuted from the total tax at the end of the year. Inland Revenue will work out provisional tax based on your previous years income tax plus an additional 5%, unless you choose to have your tax estimated. We suggest that we assist you if you wish to proceed this method as it is important to get an accurate figure, as if you have underestimated you may be liable for interest on the underestimated amount. See important dates to determine when these are required to be paid. |