Latest news with #InlandRevenueDepartment
NZ Herald
a day ago
- Business
- NZ Herald
Tax refunds: Inland Revenue Department begins paying overtaxed Kiwis back
The Inland Revenue Department has tallied the tax it has taken from people over the last financial year and has begun the process of giving any extra back - and chasing up tax owed. The IRD issued income tax assessments on Saturday and has sent them out to Kiwis. In
South China Morning Post
26-05-2025
- Business
- South China Morning Post
From salaries to side gigs and audits: how to navigate Hong Kong's tax system
The tax filing season in Hong Kong is in full swing, with June 2 marking the deadline for most individuals. Tax audits have come under scrutiny recently after at least 20 journalists raised concerns about 'unreasonable' reviews targeting them and their families. The Inland Revenue Department (IRD) Commissioner dismissed these claims, stressing that assessment procedures were applied uniformly and did not target specific industries or individuals based on their background. The Post provides a guide on what to pay attention to regarding filing requirements, with insights from taxation experts on the recent audit controversy. 1. How to file your tax return and what are the key deadlines? The government issued the Individual Tax Returns for 2024-25 on May 2, 2025, requiring taxpayers to report their salaries, rental income from solely owned properties and profits from sole-proprietorship businesses. The tax return must be filed within one month from the date of issue, or within three months if the taxpayer solely owned an unincorporated business during the year of assessment. An automatic extension of one month will be given for filing the tax return for the year electronically through a service called eTAX. An eTAX account holder can file their taxes online as long as they do not claim an exemption on their income, does not own any sole proprietorship business with gross income of more than HK$2,000,000, has not claimed double taxation relief, or has not obtained an advance tax ruling for that year.
Time Business News
23-05-2025
- Business
- Time Business News
Work While You Study in NewZealand: Rules & Opportunities
So, you're thinking about studying in New Zealand? Clever choice! This stunning country is not just famous for its stunning geographies and 'Lord of the Rings' vibes, but it's also a seat for grade education and various work options for students. Imagine earning some cash while getting your degree — all while studying mountains, beaches, and vibrant cities. New Zealand universities are globally ranked and known for their creative teaching styles. Plus, it's a super safe country with a laid-back lifestyle and multicultural people. No surprise that thousands of students choose to study in New Zealand every year. Working part-time can help cover living expenses, reduce financial stress, and boost your resume. It's also a great way to meet people, improve your English, and understand the Kiwi work culture firsthand. Most international students on a valid student visa can work: You're allowed to work up to 20 hours per week during semesters. During scheduled holidays, like summer and winter breaks, you can work full-time (up to 40 hours or more). Once you graduate, New Zealand offers post-study work visas that let you stay and work full-time, gaining valuable experience and possibly even permanent residency. On-campus jobs include roles in libraries, cafes, or student unions. Off-campus work is more varied — from cafes to farms and retail. Baristas Waiters Supermarket staff Call center agents Tour guides Farmhands Tutors Most student jobs pay the minimum wage, which, as of 2025, is around $23.15 per hour, though some roles may offer more, especially if they require skills or experience. New Zealand's employment laws protect you. This means you should have a written employment agreement, be paid fairly, and be treated with respect. To work legally, you'll need an IRD (Inland Revenue Department) number. You'll also pay taxes, just like every worker in New Zealand. Never accept cash jobs under the table! These are often illegal and can affect your visa. Always sign a proper employment contract. TradeMe Jobs Student Job Search (SJS) Indeed NZ Most universities offer career advice and help you prep your CV or connect with employers. Sometimes, all it takes is asking around. Many students land gigs through friends, classmates, or community centres. Use tools like Google Calendar, focus on productivity blocks, and prioritize tasks to manage both work and assignments effectively. Please don't overdo it. Your studies should still be your main focus. Take breaks, sleep well, and practice self-care. Working too much can hurt your grades. Make sure you don't let work interfere with your learning goals. Shops, restaurants, and cafes are always on the lookout for student workers, especially during tourist seasons. From picking fruits to working on vineyards, there are loads of short-term, seasonal jobs perfect for students. Good at math, science, or English? Offer tutoring services to fellow students or local school kids. Working more than 20 hours during the semester Not reporting income Taking illegal cash jobs Stick to your visa conditions. Immigration NZ is strict, and violations can lead to cancellations or bans. Even a part-time gig can help pay rent, groceries, and bills, giving you more freedom and less dependence on family support. Weekend getaways to Queenstown? Skydiving in Taupo? With a little savings, New Zealand becomes your adventure playground. Managing your money while studying is a crash course in adulting. Plus, it builds good habits for the future. Even basic jobs teach you time management, teamwork, and responsibility — all gold for your resume. You never know when your part-time boss could become your full-time job referrer or mentor! A good reference from a local employer can help land future jobs or boost your chances for residency. Many students get offered full-time positions after graduating — especially if they worked during their studies. New Zealand values skilled workers. With local experience, you may qualify for work-to-residence or skilled migrant visas. Immigration New Zealand has detailed guidelines on student work rights. Always double-check them before taking any job. Student unions often offer support for employment disputes or questions, and some even provide free legal aid. Working while you study in New Zealand isn't just a financial boost. It's a chance to grow, connect and prepare for a global career. Just follow the rules, stay organized, and soak in every moment of your Kiwi journey. You'll leave with not just a degree but a world of experience. TIME BUSINESS NEWS
NZ Herald
22-05-2025
- Business
- NZ Herald
Budget 2025: The clock is ticking on the maximum KiwiSaver Govt top-up. You have five more weeks
The current default KiwiSaver payment is 3% of your income, which is matched by your employer. This will rise to 3.5% from next April, and to 4% from April 2028. This means most workers' retirement savings at age 65 will swell by between 21% and 28% – after 40 years of working – compared with the current scheme, according to Inland Revenue Department (IRD) modelling. This also assumes a bigger withdrawal (up 9% to 15%) to buy a first home at age 30; 42,000 people withdrew from their KiwiSaver for a first-home purchase in the past year. Workers can apply to the IRD to stay at 3% if they feel unable to afford an increase, which can lead to a temporary reprieve of one year (after which you can apply again). As you and your employer pay more, the Government pays less. At present, for every additional deposit into KiwiSaver each year the Government adds an extra 50 cents, up to a maximum of $521.42 a year. This will be halved to 25c per dollar, meaning you'll still have to deposit an additional $1042.84 into your KiwiSaver to get the maximum subsidy, but it will shrink to $260.72 a year. And if you earn more than $180,000 a year (about 3.4% of workers), you won't get any subsidy. These changes come into effect in July, so to gain the $521.42 subsidy for the current year regardless of your income level, you'll need to top up your KiwiSaver by 1042.84 by the end of this June. Finance Minister Nicola Willis framed these changes – including extending the scheme to those aged 16 and 17 – as improving the scheme while making it 'more fiscally sustainable'. 'An increase in KiwiSaver balances will grow the pool of funds available for investment in New Zealand,' Willis said. Retirement Commissioner Jane Wrightson welcomed the changes. 'We're pleased to see the Government take on board some of the key recommendations we made in 2024 (higher default contributions and extending the scheme to those aged 16 and 17). 'We'd also recommended employer contributions for those over 65, but unfortunately the latter has been excluded from these latest changes.' She added that shrinking the government subsidy will hit 'low-income earners, Māori, women, and the self-employed the hardest'. Labour leader Chris Hipkins said halving the maximum subsidy will deprive an 18-year-old signing up to KiwiSaver today of $66,000 in retirement savings. Extending the scheme to 16- and 17-year-olds is estimated to cost the Government $29.3 million over four years. Those employing 16- and 17-year-olds will have to match their young workers' KiwiSaver contributions from April next year. As of March last year, there were 3.3 million KiwiSaver members – including 89% of those aged 18 to 64 – with a total of $111.8b in funds under management, and an average balance of $33,514 per member. How much will retirement savings swell? IRD modelling compared scenarios of the current scheme with those of the incoming one. The first scenario is a worker on $60,000 a year from age 25, who withdraws their savings at age 30 to buy a first home, and has a kid at age 28 and again at age 31 with a year of parental leave. Under the current scheme, the withdrawal to buy a first home would be $15,805, and the KiwiSaver balance at age 65 would be a shade under $400,000. The higher contributions (meaning less disposable income for them in the interim) would increase the house-buying withdrawal by 9%, and the total savings at age 65 by 26% (to a shade over $500,000). Someone earning $30,000 a year from age 25 would have their withdrawal for a first house (at age 30) increase by 9%, and their total savings at age 65 rise by 21%. Those increases for someone on $100,000 a year from age 25 would be 15% and 28%, respectively. Derek Cheng is a senior journalist who started at the Herald in 2004. He has worked several stints in the press gallery team and is a former deputy political editor. Do you have questions about the Budget? Ask our experts – business editor at large Liam Dann, senior political correspondent Audrey Young and Wellington business editor Jenee Tibshraeny – in a Herald Premium online Q&A here at at 9.30am, Friday, May 23.
Business Times
22-05-2025
- Business
- Business Times
Hong Kong ramps up tax checks on private equity, venture funds
[HONG KONG] Hong Kong authorities are intensifying tax checks of private equity and venture funds as the Asian financial hub faces pressure to plug deficits. Over the past 12 to 24 months, the Inland Revenue Department (IRD) has stepped up reviews on management fees and so-called carried interest to managers in Hong Kong. Some tax advisers said they have seen a jump of as much as 50 per cent in funds seeking guidance on how to respond to inquiries from the authorities during that period. Authorities are 'ramping up' their collection efforts, said Patrick Yip, vice-chair and international tax partner at Deloitte China. 'We have seen a noticeable increase in inquiries from fund clients seeking advice on how to deal with inquiries from the Hong Kong tax authorities in the last two years.' Hong Kong, which prides itself on its low taxes, is battling a sluggish economy and steep deficits after years of political upheaval, strict Covid curbs and a slumping housing market. The government is looking at drastic measures, including cutting 10,000 civil servant jobs and ways to boost revenue, such as potentially regulating basketball betting. In 2024, it raised taxes on high earners – the first hike in two decades. The city's top income tax rate is 17 per cent and it has no levies on capital gains. The IRD has a standing practice 'to select high-risk cases for post assessment review, including audit and investigation' which applies to all taxpayers and industries, a spokesperson said, adding that there's no 'step-up measure' applied to investment managers. As long as it's 'commercially realistic' and lacks the 'hallmarks of tax avoidance' the IRD will not interfere with business arrangement between a fund and the investment manager on the distribution of carried interest and fees, the spokesperson said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Hong Kong authorities view carried interest as a performance fee, which is taxed at about 15 to 16.5 per cent, while management fees are subject to the 16.5 per cent corporate tax rate. While there's no specific data on fund reviews, the department's audit and investigation team assessed back taxes and penalties of HK$3.3 billion (S$543 million) during 2023/2024 for businesses and individuals, up 27 per cent from the preceding period. Still, the number of cases were roughly unchanged at 1,802, suggesting it went after bigger pots of money. Kenneth Yim, founder and tax partner at KYT, said in most cases over the past years the IRD has examined it has asked that carried interest, management and advisory fees be attributed to taxable local entities rather than offshore entities in places such as the Cayman Islands. 'In light of the government's budget deficit, the IRD has ramped up its enforcement efforts in recent years,' Yim said. 'This applies broadly to all taxpayers, including those in the fund industry. It's expected that the IRD will continue applying an increasingly stringent approach to reviewing cases in this regard.' As at 2023, about 650 private equity and venture capital firms with assets of US$215 billion had a home in the city, of which close to 60 per cent were regional headquarters, according to the Hong Kong Monetary Authority (HKMA). Concessions At the same time, the city has been seeking to lure funds, family offices and wealthy individuals with tax concessions to bolster its status as a global financial centre and wealth hub. Back in 2021, it passed a law exempting some carried interest, but it has not had the intended effect and is now being modified. The city's exemptions on carried interest was design to prod more funds to relocate back to Hong Kong, which would allow it to raise more taxes from fees. But managers have encountered difficulties fulfilling requirements – such as a certification by the HKMA, the city's de facto central bank. As a result, the concession 'has not been widely adopted,' according to a 2023 report by the Alternative Investment Management Association. To enhance the tax regime, the Financial Services and Treasury Bureau issued a paper in November 2024 with proposals including making more transactions eligible for carried interest concessions and doing away with the HKMA certification requirement. The government will formulate proposals to refine various preferential tax regimes for the asset and wealth management businesses including that for carried interest and aims to submit the proposals to the legislative council next year, with a view to apply the measures from 2025/2026, the spokesperson said. Hong Kong's latest push is coming at a tough time for investment firms that have struggled to raise money in recent years, with funding from US investors drying up amid rising geopolitical tensions. According to Deloitte's Yip, the firm has seen the tax authorities open up more audits of sub-managers for the pre-Covid years when the funds were having some of their better years, as the six-year statute of limitation is running out. The spokesperson for the tax authorities said that a review can cover a number of years, whether before or after Covid. Kher Sheng Lee, co-head of Asia-Pacific at Alternative Investment Management Association, said with the right policies Hong Kong can attract a larger share of income that is being kept in other jurisdictions. 'There's billions of US dollars at stake in management fees and carried interest tied to Hong Kong's alternative asset management industry,' said Aima's Lee. 'Much of that still sits offshore.' BLOOMBERG
