The Government passed the Taxation (Income Tax Rate and Other Amendments) Bill on 3 December 2020. This was granted Royal assent on 7 December 2020. It contains four main measures, including:
introducing a new top personal income tax rate of 39%
introducing increase disclosure requirements for trusts
increasing the Minimum Family Tax Credit (MFTC) threshold for the 2020-21 tax year
clarifying the ability for Inland Revenue to require information for the purposes of providing quality policy advice.
For details on these, see:
the media statement from the Minister of Finance and the Minister of Revenue
the Bill and departmental disclosure statement
the regulatory impact assessment
the commentary on the Bill, and
SOURCE: IRD
