Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill

Hon David Parker

Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill

Government Bill

255—1

Contents

Explanatory note
1Title
2Commencement
Part 1
Annual rates of income tax
3Annual rates of income tax for 2023–24 tax year
Part 2
Amendments to Income Tax Act 2007
4Amendments to Income Tax Act 2007
5Section BC 7 amended (Income tax liability of person with schedular income)
6Section BF 1 amended (Other obligations)
7Section BH 1 amended (Double tax agreements)
8Section CB 6A amended (Disposal within 10 years: Bright-line test for residential land)
9Section CB 16A amended (Main home exclusion for disposal within 10 years)
10Section CD 44 amended (Available capital distribution amount)
11Section CE 1 amended (Amounts derived in connection with employment)
12Section CH 8 amended (Market value substituted)
13Section CW 10 amended (Dividend within New Zealand wholly-owned group)
14Section CW 16B amended (Accommodation expenditure: out-of-town secondments and projects)
15Section CW 16C amended (Time periods for certain accommodation expenditure)
16Section CW 57 amended (Non-resident company involved in exploration and development activities)
17New cross-heading and section CX 58B inserted
Certain amounts from trusts
CX 58BAmounts derived by certain close companies from trusts
18New section CZ 25C inserted (Land or buildings as revenue account property affected by North Island flooding events and replaced—insurance or compensation)
CZ 25CLand or buildings as revenue account property affected by North Island flooding events and replaced—insurance or compensation
19Section CZ 29B amended (Accommodation expenditure: North Island flooding events)
20Section CZ 40 amended (Main home exclusion for bright-line: acquisition on or after 29 March 2018)
21Section DB 1 amended (Taxes, other than GST, and penalties)
22New section DZ 20B inserted (Expenditure incurred while income-earning activity interrupted by North Island flooding event)
DZ 20BExpenditure incurred while income-earning activity interrupted by North Island flooding event
23Section EW 37 amended (Consideration when person enters rules: accrued obligation)
24Section EW 41 amended (Consideration when person enters rules: accrued entitlement)
25Section EX 46 amended (Limits on choice of calculation methods)
26New section EZ 23BE inserted (Property acquired after depreciable property affected by North Island flooding events)
EZ 23BEProperty acquired after depreciable property affected by North Island flooding events
27New cross-heading and sections EZ 83 to EZ 87 inserted
Damage from North Island flooding events
EZ 83Insurance for damage of property caused by North Island flooding events: treatment as disposal and reacquisition
EZ 84Insurance for damage of property caused by North Island flooding events: limit on depreciation recovery income
EZ 85Item treated as available for use if access restricted due to North Island flooding events
EZ 86Insurance for North Island flooding event damage causing disposal: optional timing rule for income, deductions
EZ 87Insurance for repairs of North Island flooding event damage: optional timing rule for income, deductions
28Section FC 2 amended (Transfer at market value)
29Section FC 9B amended (Residential land: certain transferors)
30New cross-heading and section FZ 7B inserted
Group property affected by North Island flooding events
FZ 7BValuation of group assets: insurance proceeds from North Island flooding events
31Section HC 4 amended (Corpus of trust)
32Section HC 7 amended (Trustee income)
33New section HC 8B inserted (Trustee income within 12 months after person’s death)
HC 8BTrustee income within 12 months after person’s death
34Section HC 13 repealed (Charitable trusts)
35Section HC 17 amended (Amounts derived as beneficiary income)
36Section HC 24 amended (Trustees’ obligations)
37Section HC 29 amended (Settlors’ liability to income tax)
38Section HC 31 amended (When existing trusts come into tax base)
39New sections HC 38 and HC 39 inserted
HC 38Beneficiary income of certain close companies
HC 39Trustee income: disabled beneficiary trusts
40Section HD 12 amended (Trusts)
41Section HF 1 amended (Maori authorities and the Maori authority rules)
42Section HG 4 amended (Disposal upon final dissolution)
43Section HM 60 amended (Notified investor rates)
44New subpart HP inserted (Taxation of members of certain multinational groups)
Subpart HP—Taxation of members of certain multinational groups
HP 1Liability for multinational top-up tax
HP 2Payment date for multinational top-up tax
HP 3Application of global anti-base erosion model rules
HP 4Implementation of components of applied global anti-base erosion rules
HP 5Meaning of terms defined in global anti-base erosion model rules
45Section HP 5 amended (Meaning of terms defined in global anti-base erosion model rules)
46Section HR 12 amended (Non-exempt charities: treatment of tax-exempt accumulations)
47New section LE 4B inserted (Trustees for certain close companies)
LE 4BTrustees for certain close companies
48Section LJ 3 replaced (Meaning of foreign income tax)
LJ 3Meaning of foreign income tax
49Section MB 7 amended (Family scheme income of settlor of trust)
50Section MK 2 amended (Eligibility requirements)
51New section OB 7BB inserted (ICA payment of multinational top-up tax)
OB 7BBICA payment of multinational top-up tax
52Table O1 amended (Imputation credits)
53New section OP 11BA inserted (Consolidated ICA payment of multinational top-up tax)
OP 11BAConsolidated ICA payment of multinational top-up tax
54Table O19 amended (Imputation credits of consolidated imputation groups)
55Section RC 6 amended (Standard method)
56Section RD 17 amended (Payment of extra pay with other PAYE income)
57New sections RD 20B and RD 20C inserted
RD 20BPayments of accident compensation earnings-related payment for period of more than 1 year
RD 20CPayments of main benefit for period of more than 1 year
58Section RE 14C amended (Non-cash dividends distributed through intermediaries)
59Section YA 1 amended (Definitions)
60Section YB 8 amended (Trustee and settlor)
61Section YD 4 amended (Classes of income treated as having New Zealand source)
62Schedule 1 amended (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits)
6BTaxable income: trustees of disabled beneficiary trusts
6CTaxable income: trustees of certain estates
13Schedular taxable income: accident compensation earnings-related payments for period of more than 1 year
14Schedular taxable income: main benefit payments for period of more than 1 year
63New schedule 25B inserted (Items modifying global anti-base erosion model rules)
64Schedule 32 amended (Recipients of charitable or other public benefit gifts)
Part 3
Amendments to Tax Administration Act 1994
65Amendments to Tax Administration Act 1994
66Section 3 amended (Interpretation)
67Section 32E amended (Applications for RWT-exempt status)
68Section 78G amended (Country-by-country report from large multinational group)
69New sections 78H to 78J inserted
78HRegistration for purposes of applied global anti-base erosion rules
78IPre-assessment annual information reporting requirements for purposes of applied global anti-base erosion rules
78JAnnual multinational top-up tax return
70Section 79 amended (Other annual returns)
71Section 80 amended (Commissioner may require other returns to be made)
72New section 92BA inserted (Taxpayer assessment of multinational top-up tax)
92BATaxpayer assessment of multinational top-up tax
73Section 120KBB amended (Interest for most standard method provisional taxpayers)
74New section 139AAB inserted (Penalty for large multinational group failing to meet country-by-country reporting requirements)
139AABPenalty for large multinational group failing to meet country-by-country reporting requirements
75New section 139ABB inserted (Penalties for purposes of applied global anti-base erosion rules)
139ABBPenalties for purposes of applied global anti-base erosion rules
76Section 141B amended (Unacceptable tax position)
77New section 226G inserted (Application of changes to commentary or guidance relating to global anti-base erosion model rules)
226GApplication of changes to commentary or guidance relating to global anti-base erosion model rules
Part 4
Amendments to other enactments and revocations
Amendments to Goods and Services Tax Act 1985
78Amendments to Goods and Services Tax Act 1985
79Section 10 amended (Value of supply of goods and services)
80Section 11A amended (Zero-rating of services)
81Section 19N amended (Supply correction information)
82Section 20 amended (Calculation of tax payable)
83Section 25 amended (Adjustments for inaccuracies)
Amendments to KiwiSaver Act 2006
84Amendments to KiwiSaver Act 2006
85Section 4 amended (Interpretation)
86Section 220B amended (Information sharing)
Amendments to Child Support Act 1991
87Amendments to Child Support Act 1991
88Section 87A amended (Four-year time bar for amendment of certain assessments)
89Schedule 1 amended (Application, transitional, and savings provisions relating to amendments to Act made on or after 1 April 2015)
Amendment to Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
90Amendment to Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
Amendment to Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
91Amendment to Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
Revocations
92Revocations
Schedule 1
New schedule 25B inserted into Income Tax Act 2007
Schedule 2
New Part 7 inserted into Schedule 1 of Child Support Act 1991

The Parliament of New Zealand enacts as follows: