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Income Tax Act 2007

General collection rules - Employment-related taxes - Calculating amounts of tax

RD 10C: Calculating amounts of tax following changes to rates or thresholds

You could also call this:

“How to calculate tax when rates or thresholds change”

When there’s a change to a rate or threshold in the Income Tax Act 2007 or the Tax Administration Act 1994 that affects how much tax you need to pay on your PAYE income payment, you need to use the rate that applies on the day you get paid. This is also true for any day that the law says you’re treated as being paid. The amount of tax you need to pay is worked out using this rate, even if it’s different from the rate that was in place before.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS43941.

Topics:
Money and consumer rights > Taxes
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Part R General collection rules
Employment-related taxes: Calculating amounts of tax

RD 10CCalculating amounts of tax following changes to rates or thresholds

  1. When a change occurs to a rate or threshold in this Act or the Tax Administration Act 1994 affecting the amount of tax for a PAYE income payment, the calculation of the amount of tax must be made using the rate applying on the day on which the PAYE income payment is paid or is otherwise under this Act treated as paid.

Notes
  • Section RD 10C: inserted, on , by section 200 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).