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18. January 2020 15:54
by Admin
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IRD DISTRIBUTION AND TAX REPORTING REQUIREMENTS FROM APRIL 2020

18. January 2020 15:54 by Admin | 0 Comments

A first and ready for IRD's April 2020 deadline, the ability for IR electronic filing of Maori Authority Distributions, Credits, RWT and NRWT.

The new facility is available through GDMA | Reports | Distribution and Tax (MAC) Report

5 new files are created to your desktop and prefixed as follows:

  1. GDProIR_Dist_Report
  2. GDProIR_NRWT_Report
  3. GDProIR_RWT_Report

IR Filing import files are:

  1. GDProIR_NRWT
  2. GDProIR_RWT

The PDF version of the Distribution report remains unchanged.

GDProIR_Dist_Report

This is the new CSV version of the distribution report. It includes a more comprehensive list of fields as follows.

  • Core owner info
    • SHID, Firstname, Lastname, IRD, DOB, Bank (country), Bank Details, Bank Acc, Owner Type, Pay Type, Gender, Payee, IsNRWT
  • Owner contact info
    • Address1, Postcode, Phone1, Phone2, Cell, Fax, Email
  • Other owner info
    • Decd, Deceased, Region, Sh Code, Admin, Closed
  • Report selection info
    • Trust (as there could be more than one trust for the selected trust group), Shares, Start Date, End Date
  • Distribution info
    • Balance, Open/Bal, Distribution, MACRate, MAC, RWT, NRWT
  • Payment info
    • DC, Payment, DC Cancelled, Journal, Other ($ transactions)

NRWT and RWT IR Filing

IR Filing system import files:

  • GDProIR_NRWT
  • GDProIR_RWT

These contain the owner’s contact info, distribution, credit, NRWT and RWT tax information in a format required by IR Filing.

Each owner that is to have its RWT and NRWT imported into IR Filing requires at least one of contact address, email address or phone number.

NRWT and RWT IR Filing Preparation

Some preparation in your database required before using IR Filing, as follows:

1. Trust Group Contact Details

IR Filing requires the trust group’s IRD, contact person and contact number. The Update Trust Details button is for quick access to the trust group maintenance screen to update these details if required.

2. Owner Contact Details

Each owner that is to have its RWT and NRWT imported into IR Filing requires at least one of contact address, email address or phone number.

3. Owner Country Code

NRWT IR Filing requires country code for each owner that has NRWT.

A list of valid country codes are here:

https://www.ird.govt.nz/income-tax/withholding-taxes/non-resident-withholding-tax-nrwt/deduct-nrwt-at-the-right-rate/nrwt-country-codes

AU for Australia is the typical country code. The following is how it’s entered into your database and then allocated against NRWT owners.

Select List then Regions

 

Enter AU for Region Code and AU for Region Description, then click Tab key two times.

 

Search an owner that has RWT and allocate the country code via the Region drop-down selection, then click Tab key:

GDProIR_NRWT_Report

This is the same as the new CSV version of the distribution report without the payment info and for owners with NRWT. This may have more owners than the file used for IR Filing importing, as it contains all owners and not just those with contact information.

GDProIR_RWT_Report

This is the same as the new CSV version of the distribution report without the payment info and for owners with RWT. This may have more owners than the file used for IR Filing importing, as it contains all owners and not just those with contact information.

IR File Production

The following screen contains entries to be provided by your accountant. Enter the values once obtained and the simply click IR Files to create the 5 CSV files.

 

Detailed info here, including explanations of the above values: https://www.ird.govt.nz/income-tax/withholding-taxes/resident-withholding-tax-rwt/payers-of-resident-withholding-tax-rwt/investment-income-reporting/reporting-requirements-from-1-april-2020/maori-authorities---reporting-requirements-from-1-april-2020

This can be a lot to take in. Please have your accountant assist with registering, setting up and using IR electronic filing. During April, May and June 2020, we expect an influx of queries. Please allow up to 5 business days for a response.

If possible, try and get the IR Filing registration and setup done as early as possible, before April 2020.

Notes

  • IR Filing requires trust group IRD.
  • IR NRWT Filing system expects shares to be whole numbers. 1 is used for those shares less than 1. IR NRWT Filing also requires the shares to be rounded to the nearest whole number. IR NRWT Filing tests rejected share fractions.
  • IR Filing of Multiple distributions is possible. The IR Filing record identifier includes the shareholder ID and the distribution date as this combination distinguishes between the different distributions.
  • IR filing only accepts distributions made after 2015.

 

17. October 2018 11:56
by Admin
0 Comments

Custom Statement

17. October 2018 11:56 by Admin | 0 Comments

To create your own custom statement:

Export the statement list:

Open the exported file and format the columns E,G,H,I,J,K:

Use the file to mail merge with the attached MS Word document.

1.csv (347.00 bytes)

CustomStatement.docx (24.37 kb)

How to mail merge: https://www.google.com/search?q=how+to+mail+merge+with+ms+word

Format the document to suit. For windows envelopes, adjust the top placement of the name/address until it fits inside the window.

 

 

17. October 2018 10:48
by Admin
0 Comments

Maori Authority Credit MAC Calculation

17. October 2018 10:48 by Admin | 0 Comments

Maori Authority Credits are just like Company Dividend Input Credits, so the Gross amount is payable to the tax payer (shareholder) less the Maori Authority tax which is 17.5%, that is paid to the IRD.

Refer to IRD Reference regarding MAC

The following can be used to assist in MAC calculation

MAC Calc June 2018.xlsx (11.68 kb)

Rates on the distribution screen

The above will tax at 33% (17.5% + 15.5%) for those with no IRD and more than $200 in distribution. If there is no threshold (i.e. $200) then change the RWT Threshold to $0.

For the system to apply NRWT, the NRWT needs to be ticked against each owner on the main screen. It is an IRD requirement for the owner to supply NRWT certificate to be eligible.

It is assumed there is enough Maori Authority credits. If it is not known, IRD will need to be contacted.

RWT

Regarding RWT on entire distribution and not just those paid out "A Māori authority declares a distribution for all beneficiaries, calculating the payout and crediting the account of each beneficiary. They make payment to known beneficiaries but some distributions remain unclaimed. The Māori authority is required to account for RWT on the full amount declared not just the amount physically paid to beneficiaries"

https://www.ird.govt.nz/resources/9/e/9e39965e-b940-432e-a183-e6f7486e5a48/ir1027.pdf

https://www.ird.govt.nz/maori-organisations/introduction/intro-maori-authorities/maoriauthorities-intro-maori-authorities.html

https://www.ird.govt.nz/maori-organisations/credits/credit-rules/maori-authorities-credits-allocation-rules.html

Threshold Net of Distribution

To have the threshold net of distribution – that is the distribution less MA credit % - changing the threshold to be $242.42. That is $200 + Maori Authority Credit of 17.5% inclusive. It seems confusing at first the calculation ($200 x 21.21%) but it is calculated as an imputation credit. That is if you apply 17.5% to the $242.42, you will get the MA Credit of $42.42.

https://www.ird.govt.nz/maori-organisations/credits/credit-rules/

Opinion on NRWT

Individuals living overseas have the same rates apply as if they were residents unless they have provided you with an IRD supplied NRWT certificate. NRWT if ticked will only apply 15%, regardless.

https://www.ird.govt.nz/resources/d/0/d0ddc344-5405-44cc-aa98-e04584e47d40/ir291.pdf