Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2020

2020/129

Coat of Arms of New Zealand

Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2020

Patsy Reddy, Governor-General

Order in Council

At Wellington this 22nd day of June 2020

Present:
Her Excellency the Governor-General in Council

These regulations are made under section RA 21(3) and (4) of the Income Tax Act 2007 on the advice and with the consent of the Executive Council.

Regulations

1 Title

These regulations are the Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2020.

2 Commencement

These regulations come into force on 23 July 2020.

3 Principal regulations

These regulations amend the Income Tax (Fringe Benefit Tax, Interest on Loans) Regulations 1995 (the principal regulations).

4 Schedule 1 amended

In Schedule 1, after the item relating to the quarter commencing 1 October 2019, insert:

Quarter commencing 1 July 2020, and subsequent quarters4.50

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 23 July 2020, amend the Income Tax (Fringe Benefit Tax, Interest on Loans) Regulations 1995.

These regulations reduce, from 5.26% to 4.50%, the rate of interest that applies for fringe benefit tax purposes to employment-related loans. The new rate applies for the quarter beginning 1 July 2020 and for subsequent quarters.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 25 June 2020.

These regulations are administered by the Inland Revenue Department.