What’s new in 2020?

What’s new in 2020?


Partnership Law gets a makeover:

The Partnership Law Act 2019, which governs business partnerships(for example, the rights and responsibilities of partners to each other and to third parties) comes into effect in April. The modernised Act is a lot easier to understand and apply than its 1908 predecessor.


Investment income changes:

Do you pay or receive interest, dividends, PIE income, or taxable Māori authority distributions? New reporting and administration rules apply from 1 April. Payers now need to report more frequently (and electronically) and recipients have to give their IRD number to their investment income payer (ie, bank) to make sure they’re on the right tax rate. For the full list of changes, visit www.ird.govt.nz/investment-income


Staff use of telecommunications tools and usage plans:

Inland Revenue has released a guidance statement for employers wanting to reimburse an employee for the employee’s cost of their phone, tablet or computer. If the device is mainly used by the employee for business purposes, the employer can reimburse 75% of their total bill. If the tool is mainly used by the employee for private purposes, but required for business purposes, then the employer can pay the employee 25% of their total bill. In both cases, the income is non-taxable. There is also a proposed provision to allow $5 a week to be non-taxable to an employee where payments made to employees to reimburse for the use of their personal mobile device is $5 or less per week.