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18. January 2020 15:54
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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.

 

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