Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/8/2013

New Zealand - Taxation of employer-provided accommodation, travel allowances  

March 8: New Zealand’s Inland Revenue “clarified” its position on the taxation of employer-provided accommodation and accommodation allowances when an employee is traveling for work.

The recent “appendix” comes after a much-discussed statement issued December 2012, when the Inland Revenue stated that accommodation is (and was always) taxable—even if an individual maintains a home elsewhere and does not benefit from the arrangement. Taxpayers were advised to make voluntary disclosures and pay tax on previously un-taxed accommodation.


The latest release suggests that that a relocation of between six (6) and 12 months could potentially be a temporary shift (and therefore non-taxable), but that a shift of over 12 months is likely to be more than a temporary shift unless exceptional circumstances exist (and taxable).

KPMG observation

The Inland Revenue statement and follow-up clarification could result in many employees traveling to Christchurch, to help with the rebuild, becoming taxable on their accommodation.


Read a March 2013 report [PDF 63 KB] prepared by the KPMG member firm in New Zealand: IRD “clarifies” stance on accommodation payments




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