Snapshot of recent developments

Tax legislation and Policy Announcements

Taxation and the not-for-profit sector – information release

On 4 March 2026, Inland Revenue published an information release of documents relating to Taxation and the not-for-profit sector consultation (2025).

Inland Revenue’s use of artificial intelligence

On 6 March 2026, Inland Revenue published an information release of documents relating to Inland Revenue’s use of artificial intelligence.

Additional financial support from 1 April 2026

On 29 March 2026, the Minister of Finance announced that superannuitants, working families, students and beneficiaries will receive additional cost-of-living support from 1 April 2026. The changes are as follows:

• The annual general adjustment for social assistance, including NZ superannuation, veteran’s pension, jobseeker support and student allowances.
• An increase in the family tax credit. Eligible families with one child will receive an extra $400 a year, rising to $720 for families with two children and $1,050 with three.
• An increase of $50 per week to the in-work tax credit. Families with dependent children where at least one parent is in paid employment and neither parent receives a main benefit from Work and Income are eligible for the credit.
• Budget 2025 changes to the Working for Families abatement threshold come into effect from 1 April 2026.
  

Background Papers to Treasury’s Long-term Fiscal Statement

On 30 March 2026, Treasury published four analytical papers to support the Treasury’s 2025 Long-term Fiscal Statement. These publications examine the fiscal implications of an ageing population, transnational migration patterns, and consider alternative tax strategies to meet impending fiscal pressures.

ACC changes from 1 April 2026

From 1 April 2026, the following changes to the ACC levy are taking effect:

1. The no claims discount is ending.
2. Experience Rating will become self-funding.
3. Interest will apply to new or rolled-over levy instalment plans.4.
4. Changes will be made to how late payment interest for overdue levies and instalments is applied, and how interest rates are set.

From 1 April 2026 the ACC Earner Levy rate is $1.75 per $100 (1.75%) to a maximum earnings level of $156,641 (maximum levy of $2,741.22)

Inland Revenue Statements and Guidance

Determination: list of the participating jurisdictions for the CRS applied standard

On 25 February 2026, Inland Revenue issued determination AE 26/01. The determination lists the 125 participating jurisdictions that have agreed to provide New Zealand with financial account information under the Common Reporting Standard from 1 April 2026. Cameroon, Mongolia, and Trinidad and Tobago are the new additions since the last update in 2025.

Tax Information Bulletin: Vol 38, No 2 (March 2026)

On 3 March 2026, Inland Revenue issued TIB Vol 38, No 2 (March 2026):

Determinations

• PROV28: Provisional depreciation rate for battery energy storage systems (modular)
• DET 26/01: Declaration that the January 2026 severe weather event is an emergency event for the purposed of family scheme income
  

Product rulings

• BR Prd 25/07: New Zealand Bloodstock Finance and Leasing Limited
• BR Prd 25/08: Northride New Zealand Limited
  

Technical decision summary

• TDS 26/01: Opening value of FIF income calculation

Determination: Investors cannot use the fair dividend rate method to calculate FIF income from NZD class units of the Daintree High Income Trust

On 4 March 2026, Inland Revenue issued determination FDR 2026/01 providing that a NZ resident investor cannot use the fair dividend rate method to calculate Foreign Investment Fund income from an investment in Daintree High Income Trust – NZD class units. The determination applies for the 2026 and subsequent income years, except if a person’s income year begins before the date of the determination.

Inland Revenue: Warning about impersonation scams

On 5 March 2026, Inland Revenue warned people to be wary of social media scams impersonating well known New Zealanders. An image of a man said to be the Commissioner of Inland Revenue Peter Mersi (despite little resemblance), was used as part of a social media scam inviting people to a closed live webinar on upcoming crypto tax changes.

There is more information online on the IR website and at Scams and fraud - Own Your Online.

Inland Revenue: Improvements to the process of removing a company or limited partnership from the Register

On 9 March 2026, Inland Revenue released the new standard form to request a letter of no objection for removal from the New Zealand Companies Office register.

Inland Revenue: Information release relating to Order in Council - Tax Administration (Reportable Jurisdictions for Application of CRS Standard) Amendment Regulations 2026

On 10 March 2026, Inland Revenue published an information release of documents relating to the Order in Council: Tax Administration (Reportable Jurisdictions for Application of CRS Standard) Amendment Regulations 2026.

Revenue Alert: Failure to pay PAYE deductions to Inland Revenue

On 16 March 2026, Inland Revenue published Revenue Alert 26/01 Failure to pay PAYE deductions to Inland Revenue. The Revenue Alert reminds employers that they must pay PAYE and other amounts deducted from an employee’s salary or wages to Inland Revenue by the due date. An employer making deductions and failing to pay them to Inland Revenue is liable for a criminal offence carrying a maximum sentence of up to 5 years in prison. The Commissioner of Inland Revenue will consider, where appropriate, the possibility of prosecution action where this behaviour is identified. Anyone concerned that they have entered such an arrangement or are considering doing so should contact their tax advisor or Inland Revenue for advice about the tax implications.

Determination: Non-attributing active insurance

On 16 March 2026, Inland Revenue released determinations providing that certain Tower insurance subsidiaries in Tonga, American Samoa, Samoa, the Cook Islands and Fiji are all non-attributing active Controlled Foreign Companies (CFCs) under s EX 21B. This means a person will have no attributed CFC income or loss from those specified companies under ss CQ 2 and DN 2. The determinations apply for the 2026 and 2027 income years.

Inland Revenue: myIR systems updates complete

On 17 March 2026, Inland Revenue completed updates to myIR. Minor changes have been made to how users update physical addresses, unsubscribe from IR emails, update password, and request a direct debit mandate. Users must also now have a myIR account to apply for unclaimed money either for themselves or on behalf of someone else.

Inland Revenue: New Investment Boost keypoint on IR10

On 17 March 2026, Inland Revenue advised that they updated the IR10 (financial statements summary) for the 2026 income tax year and later years. Businesses must now record the total value of assets they have claimed Investment Boost for in Box 60 ‘Total value of Investment Boost asset(s) being claimed’. This should not include amounts for private use. Businesses still need to include the total amount of Investment Boost claimed in Box 52 ‘Tax depreciation’. Inland Revenue have updated the IR10 guide to reflect the changes.

Inland Revenue: Tax agents survey results

On 18 March 2026, Inland Revenue published the survey results from the October to December 2025 Tax Agents survey. 92% of tax agents reported satisfactory overall experiences with Inland Revenue. Faster response times was the most suggested area for improvement, with satisfaction currently at 70%.

Inland Revenue: Prison time for tax and COVID offending

On 19 March 2026, Inland Revenue published details regarding the 24 month prison sentence imposed on a Tauranga man for paying himself GST refunds, filing false income tax returns, and dishonestly applying for COVID-19 support payments for the company he incorporated during the pandemic which made no sales nor incurred any expenditure.

Inland Revenue: Severe weather conditions in Whanganui and South Wairarapa districts in February

On 19 March 2026, Inland Revenue published an update on how Inland Revenue can help those affected by the severe weather conditions.

Inland Revenue: Short-term extra security step for myIR (international IP addresses only)

On 23 March 2026, Inland Revenue announced there will be a temporary CAPTCHA security step for taxpayers accessing their myIR from an international IP address.

Interpretation Statement: GST treatment of supplies of payment processing or facilitation services to merchants

On 24 March 2026, Inland Revenue published Interpretation Statement IS 26/02: GST treatment of supplies of payment processing or facilitation services to merchants. This Interpretation Statement applies to entities that provide payment processing or facilitation services, including payment technology, to merchants. These entities include payment service providers (PSPs), buy now, pay later (BNPL) providers and other suppliers of payment technology or infrastructure. The statement provides a framework to determine whether services provided to merchants are financial services. When the supply to merchants includes settlement services, there will be a supply of financial services, and these supplies will be GST exempt (or zero-rated if applicable). The statement also explains whether there is a single supply or multiple supplies of services that may have different GST treatments.

Inland Revenue: Ongoing compliance and debt campaigns

On 24 March 2026, Inland Revenue announced that their focus will be on GST and PAYE debtors in the construction sector. From late March, Inland Revenue will be calling debtors in the construction sector and making site visits more frequently.

Inland Revenue: COVID offending leads to community detention

On 24 March 2026, Inland Revenue issued a media release detailing the 16-week community detention sentence imposed on a Wainuiomata woman who fraudulently applied for $30,000 worth of COVID-relief payments that her company was not entitled to.

Inland Revenue: Former tax agent sentenced to home detention

On 25 March 2026, Inland Revenue issued a media release detailing a former Wellington tax agent’s fraudulent claim for COVID relief payments against Inland Revenue and the Ministry of Social Development. The former tax agent was sentenced to ten months home detention for applying for $50,600 of unentitled relief and submitting 18 fraudulent bank statements to Inland Revenue.

Inland Revenue: Nil income tax returns – non-active entities

On 25 March 2026, Inland Revenue issued a few reminders for taxpayers’ filing obligations for non-active entities. A taxpayer can check their Returns tab in myIR to find out whether they are expected to file a return.

Inland Revenue: April 2026 changes – remaining webinars now available

On 25 March 2026, Inland Revenue announced that the remaining webinars covering the April 2026 tax changes are now available to watch. The latest webinars cover changes to income tax, international tax, and best of the rest. They follow on from the GST and Employer webinars already released.

Interpretation Statements: Shortfall penalties

On 27 March 2026, Inland Revenue published the finalised shortfall penalties Interpretation Statements and accompanying fact sheets:

• IS 26/03: Shortfall penalties – requirements for a “tax position” and a “tax shortfall”.
• IS 26/03 FS 1: Shortfall penalties – requirements for a “tax position” and a “tax shortfall” - fact sheet.
• IS 26/04: Shortfall penalty for not taking reasonable care.
• IS 26/04 FS 1: Shortfall penalty for not taking reasonable care - fact sheet.
• IS 26/05: Shortfall penalty for taking an unacceptable tax position.
• IS 26/05 FS 1: Income tax – Unacceptable tax position shortfall penalty - fact sheet.
• IS 26/06: Shortfall penalty for gross carelessness.
• IS 26/06 FS 1: Shortfall penalty for gross carelessness - fact sheet.
• IS 26/07: Shortfall penalty for taking an abusive tax position.
• IS 26/07 FS 1: Income Tax – Abusive tax position shortfall penalty - fact sheet.
• IS 26/08: Shortfall penalty for evasion or a similar act.
• IS 26/08 FS 1: Shortfall penalty for evasion or a similar act – fact sheet.
• IS 26/09: Shortfall penalties – reductions and other matters.
• IS 26/09 FS 1: Shortfall penalties – reductions and other matters.
  

Tax Cases

Technical Decision Summary: Discretionary Investment Management Service fees (Private Ruling)

On 16 March 2026, Inland Revenue issued TDS 26/02 Discretionary Investment Management Service fees. The ruling confirms that a single global fee from a licensed provider of Discretionary Investment Management Services (DIMS) can be a GST-exempt supply where the client does not retain the ability to direct individual investment decisions after the mandate has been agreed. The Applicant was a licensed provider of DIMS and had full authority to acquire or dispose of their clients’ financial products in accordance with the agreed investment mandate. The Applicant wanted to charge a single global fee rather than dividing its regular service charges into components and sought clarification of the GST treatment of the fee. The Tax Counsel Office found that DIMS activities constituted financial services and therefore may be an exempt supply under s 14(1)(a) of the GST Act.

Australian update

Strengthening the foreign resident capital gains tax (CGT) regime—Treasury EDs released

On 10 April 2026, Treasury released two sets of exposure drafts (EDs) in respect of:

• Strengthening the foreign resident CGT regime; and
• Renewable energy asset discount capital gains for foreign residents.
  

The EDs follow the announcement in the 2024-25 Budget and Treasury’s previous consultation that ran from 23 July through 20 August 2024.
The draft legislation:

• Broadens the scope of the assets on which foreign residents must pay CGT;
• Broadens the scope of real property, with some changes applying retroactively as from 2006 (previously unannounced); and
• Provides transitional relief until 2030 for the sale of renewable energy assets as a 50% CGT discount.
  

The renewable energy asset discount capital gain had not previously been discussed in the consultation paper and is in response to submissions requesting relief to support the renewable energy sector. The short two-week consultation will end on 24 April 2026.

You can read a comprehensive summary of the proposals prepared by Deloitte Australia here.

OECD updates

Tax and Development Conference

On 2-3 March 2026, global tax leaders met in Tokyo, Japan, for the 2026 Tax and Development Conference of the Platform for Collaboration on Tax to advance domestic resource mobilisation and international tax co-operation for sustainable development.

Nepal joins global efforts to strengthen tax transparency

On 18 March 2026, the OECD announced that Nepal has become the 173rd member of the Global Forum on Transparency and Exchange of Information for Tax Purposes.

Bulgaria joins the OECD International Compliance Assurance Programme (ICAP)

In March 2026, Bulgaria joined the OECD’s International Compliance Assurance Programme (ICAP). ICAP is a voluntary programme that enables tax authorities to conduct risk assessments on multinational enterprise (MNE) groups using country-by-country reports and other relevant information.

Anti-Corruption and Integrity Outlook 2026

On 24 March 2026, the OECD published an article discussing measures that governments have taken to reduce corruption risks. The article refers to the OECD Anti-Corruption and Integrity Outlook 2026, which assesses the strengths and gaps in countries’ integrity systems, highlighting both progress that has been made as well as the uneven implementation of integrity measures in many countries.

Interim Economic Outlook

On 26 March 2026, the OECD published an article which examines global growth and inflation figures reported in their latest Interim Economic Outlook. The Outlook projects global growth of 2.9% in 2026 and 3.0% in 2027, subject to change due to the ongoing uncertainty revolving around the conflict in the Middle East. Headline inflation in G20 countries is projected to be 4.0% in 2026, easing to 2.7% in 2027.

Global Forum on Transparency and Exchange of Information for Tax Purposes

The Global Forum is launching the fifth edition of its Women Leaders in Tax Transparency programme.

Be it Resolved – new podcast episode on the global minimum tax

Manal Corwin, Director of the OECD Centre for Tax Policy and Administration discussed the implications of the global minimum tax for corporate governance and board oversight.

Note: The items covered here include only those items not covered in other articles in this issue of Tax Alert.