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NZ Confirms Tax Rules For Employees Using Own Telecoms Devices

by Mary Swire, Tax-News.com, Hong Kong

22 August 2019


New Zealand's tax agency has prepared new guidelines intended to clarify tax rules when employees use their own telecommunications tools and devices for work purposes.

The Inland Revenue noted that many employers have a policy of agreeing to or allowing employees to use their own devices for work purposes because of the benefits of convenience, flexibility, increased productivity and cost savings that brings. The guidelines note however there has been some uncertainty and inconsistency in how such arrangements are taxed.

Inland Revenue has set out how it proposes to resolve this uncertainty, to minimize compliance costs and make the whole process less complicated.

The Inland Revenue is proposing that, depending on the circumstances, where an employer reimburses an employee, either 75 percent of the total bill will be exempt income for the employee; 25 percent of the total bill will be exempt; or employees can receive up to NZD5 per week that may be exempt income.

The new rules are set out in a new draft determination – employee use of telecommunications tools and usage plans in their employment.

TAGS: compliance | tax | employees | New Zealand

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