NZ IRD to Automatically Give Out Refunds

August 3, 2018 Taxation in New Zealand

New Zealand IRDWELLINGTON – Waged staff in New Zealand will now automatically get tax refunds, without filling out any forms.

On August 3rd the Inland Revenue Department of New Zealand announced that it expects to automatically issue 750 000 tax refunds to individuals next year.

Currently, salary and wage earners in New Zealand see their personal income tax automatically deducted from their earnings, which means that they do not typically have to file annual tax returns.

However, workers whose job changed or whose payments were not always the same could voluntarily complete a Personal Tax Summary which may indicate that they are owed a tax refund.

While this process is aimed at being easy, there is an existing industry which will complete the procedure on behalf of taxpayers.

If the Inland Revenue Department’s proposed new rules are enacted, the department would automatically use the information it holds about taxpayers to generate a final tax position.

If the result shows that the taxpayer is owed a refund, it will be sent automatically into their nominated bank account.