Taxation (Annual Rates for 2026-27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill

Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill EXPLANATORY NOTE GENERAL POLICY STATEMENT The Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill (the Bill ) introduces amendments to the following enactments: Income Tax Act 2007 ( ITA ); Goods and Services Tax Act 1985 ( GSTA ); Tax Administration Act 1994 ( TAA ); KiwiSaver Act 2006; Student Loan Scheme Act 2011; Child Support Act 1991; Taxation (Budget Measures) Act 2026; and Gaming Duties Act 1971. The Bill would also make consequential amendments to the following enactments: Bills of Exchange Act 1908; Charities Act 2005; Education and Training Act 2020; Joint Family Homes Act 1964; Property (Relationships) Act 1976; Telecommunications Act 2001; Te Ture Whenua Maori Act 1993; Trans-Tasman Mutual Recognition Act 1997; Westpac New Zealand Act 2006; and Westpac New Zealand Act 2011. The Bill would also repeal the Stamp and Cheque Duties Act 1971 and replace it with a new Approved Issuer Levy Act. The Bill would also repeal the following Acts, which are spent: Estate and Gift Duties Act 1968; Estate Duty Abolition Act 1993; Estate Duty Repeal Act 1999; and Stamp Duty Abolition Act 1999. It is intended that the Bill will be divided at the committee of the whole House stage into separate Bills as follows: Parts 1 to 5 and Schedules 1 to 3 will become the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill. Part 6 and Schedules 4 and 5 will become the Approved Issuer Levy Bill. Broadly, the policy proposals in this Bill fall into 3 categories. The first category sets the annual rates of income tax for the 2026–27 tax year. The second category contains proposals aimed at improving current settings within a broad-base, low-rate framework. This framework helps to ensure the tax system is fair and efficient and impedes economic growth as little as possible. It also helps to keep compliance costs low and minimises opportunities for avoidance and evasion. The framework underpins the Government’s revenue strategy and helps to maintain public confidence in the tax system, which is crucial to encouraging voluntary compliance. Although New Zealand has relatively strong tax settings, it is important to continually maintain the tax system and ensure that it remains fit for purpose. Changes in the economic environment, business practice, or interpretation of the law can mean that the tax system becomes unfair, inefficient, complex or uncertain. The tax system needs to be responsive to these concerns. The specific changes are outlined and described in detail below. The third category relates to proposals aimed at improving the settings for tax administration (including information sharing), the goods and services tax ( GST ) regime, KiwiSaver, and social policy rules administered by Inland Revenue. The main policy measures within this Bill have generally been developed in accordance with the Generic Tax Policy Process ( GTPP ), which increases opportunities for public consultation. This process helps to ensure that policy, as well as administrative considerations, are well thought through. The GTPP is designed to ensure better, more effective, policy development through the early consideration of all proposals and their likely impacts. The GTPP means major tax initiatives that are not Budget-sensitive are subject to public scrutiny at all stages of their development. As a result, Inland Revenue and Treasury officials can develop more practical options for reform by drawing on information provided by the private sector and the people who will be affected. The final stage of the GTPP is a post-implementation review of new legislation and the identification of any remedial issues that need correcting for the new legislation to have its intended effect. Further information on the GTPP can be found at How we develop tax policy (ird.govt.nz) . The following is a summary of the specific policy measures contained in this Bill. A comprehensive explanation of all the policy items is provided in a commentary on the Bill that is available at https://www.taxpolicy.ird.govt.nz/publications/2026/bc-fbt-simplification-tax-bill . The ITA requires the rates of income tax to be set each year by an annual taxing Act. The Bill proposes that the annual rates of income tax for the 2026–27 tax year be set at the rates currently specified in Schedule 1, Part A of the ITA. The Bill would simplify how fringe benefit tax ( FBT ) applies to motor vehicles. The current rules generally require employers to determine the number of days a vehicle is available for private use, which can require logbooks and detailed record keeping. The Bill would replace that approach with a category-based approach. This allows employers to choose the category that reflects the level of private use of the vehicle and apply the corresponding rate to calculate the taxable value of the benefit to the employee. The changes are intended to reduce compliance costs and make the rules easier to apply. Associated amendments would remove or replace rules that are no longer needed under the category-based approach, including day-count formulas and existing motor vehicle exemptions. The Bill would also update the motor vehicle valuation settings, including different valuation percentages for standard vehicles, hybrid vehicles, and electric vehicles. These FBT amendments would apply from 1 April 2027. The Bill would make a number of amendments to the foreign investment fund ( FIF ) rules to reduce tax barriers to better attract and retain skills and capital in New Zealand. These changes would also reduce compliance costs, improve coherence, and make the rules more workable for New Zealand residents with foreign investments. The Bill would increase the FIF de minimis threshold from $50,000 to $100,000. Investors with overseas investments with a cost below this threshold would not need to apply the FIF rules to those investments. This proposal would apply from 1 April 2026 for the 2026–27 and later income years. A new FIF calculation method, the revenue account method ( RAM ), took effect from 1 April 2025 for recent migrants. The most common FIF calculation method (the fair dividend rate method or FDR) deems the investor to earn income equal to 5% of the opening value of foreign shares each year, regardless of actual income received from the shares. This can cause liquidity issues for unlisted shares because it can be challenging to sell unlisted shares to fund the tax liability. Other FIF calculation methods are available, but they typically all have the same issue of requiring income to be returned each year regardless of whether the investor has sold any shares or received dividends. The RAM addresses these concerns for unlisted foreign shares by taxing only 70% of the gains realised on the sale of the shares during the year, plus any actual dividends received. When introduced, eligibility to use the RAM was limited to New Zealand tax residents who arrived on or after 1 April 2024. The Bill would allow all New Zealand residents to use the RAM for unlisted foreign shares, so that they pay tax only on 70% of realised gains and actual dividends received. The Bill would also allow New Zealand residents who are concurrently taxed in another jurisdiction (due to citizenship or a right to work there) to access the RAM for all their foreign shares (listed and unlisted). These proposals would apply from 1 April 2026 for the 2026–27 and later income years. Some taxpayers with an interest of 10% or more in a FIF can use the attributable FIF income ( AFI ) method. This involves complex calculations based on the controlled foreign company rules and means that in many cases only dividends are taxed. These taxpayers typically have a more active role in their investment, so it makes sense for them to be taxed on this holding similarly to how controlled foreign companies are taxed. The Bill would ensure founders, active investors, and other key employees could continue to use the AFI method even if their stake in the business falls below 10% during business growth. This proposal would apply from 1 April 2026 for the 2026–27 and later income years. Currently, there is a 10-year exemption from the FIF rules available to New Zealand shareholders (such as founders and venture capital funds) when a New Zealand business is acquired and listed offshore. This exemption requires that the shareholder first acquired the shares before the business was acquired offshore and also before the shares were listed on an overseas stock exchange. The shares must be held continuously. This can create issues when the offshore company lists using a method that technically breaks the continuity of ownership of the shares (even if, in substance, ownership is maintained). The Bill would ensure that New Zealand investors could continue to access the 10-year FIF exemption when a New Zealand business is acquired offshore and lists on an overseas stock exchange, regardless of the method by which they list. This proposal would apply from 1 April 2026 for the 2026–27 and later income years. The Bill would make the following technical amendments to the FIF rules: Allow a person with an indirect attributing interest in a FIF (when the person invests through a controlled foreign company that in turn holds the FIF) to choose the same FIF calculation method(s) that are available for their direct interests. This would apply from 1 April 2026. Extend the RAM exit tax so it also applies when a person becomes non-resident under a double tax agreement. It currently applies only when a person becomes non-resident under domestic legislation. This would apply from 1 April 2027. Allow a person to use the cost method for FIF interests with no readily available market value, while retaining the choice to use the fair dividend rate or comparative value methods for their FIF interests with a readily available market value. This would apply from 1 April 2026. The Bill would amend the financial arrangements rules to lower compliance costs and cashflow uncertainty for taxpayers with financial arrangements denominated in foreign currencies, particularly migrants. Specifically, the Bill would: allow natural person taxpayers to elect to use a functional currency when calculating income under the financial arrangements rules for their investments denominated in foreign currencies; protect individuals who are taxed on a citizenship basis in another jurisdiction from double taxation by allowing them to calculate income on relevant financial arrangements on a cashflow basis; and remove several low-risk, common foreign currency arrangements from the financial arrangements rules altogether. This would include arrangements such as personal bank accounts, mortgages on private homes, and credit cards with foreign banks. These proposals would apply from 1 April 2027. The Bill would also include special valuation rules for financial arrangements acquired to meet Active Investor Plus Visa eligibility requirements. This would prevent unexpected tax outcomes arising from those arrangements. This proposal would apply retrospectively from 1 April 2025, being the date the visa came into effect. The Bill would update the thin capitalisation rules for foreign-owned banking groups to protect the New Zealand tax base and align the tax settings more closely with the Reserve Bank of New Zealand’s prudential capital requirements. The Bill would increase the minimum capital threshold to 12% for foreign-owned banking groups that include a domestic systemically important bank, and to 11% for other foreign-owned banking groups. The thresholds would also vary if the Reserve Bank changes the countercyclical capital buffer, so the tax rules remain aligned with changes in prudential capital settings. These changes would apply for thin capitalisation measurement periods beginning on or after 1 April 2027. The Bill would make several changes to the Research and Development Tax Incentive ( RDTI ) to improve its administration, cashflow support, and value for money. Specifically, the Bill would make the following changes: Provide the Commissioner of Inland Revenue with the discretion to accept late RDTI filings and to correct minor administrative errors in RDTI filings after the ordinary due dates. This is intended to prevent otherwise eligible claimants from missing out because of small mistakes. Introduce in-year RDTI payments. Eligible businesses would be able to receive quarterly cash payments during the year based on their expected RDTI entitlement, rather than waiting until after year-end. This is intended to improve cashflow for research and development (R&D) businesses, especially start-ups. This would apply from the 2027–28 income year. Expand the range of R&D expenditure that mining businesses can claim under the RDTI, so mining is treated similarly to other industries. This would apply from the 2027–28 income year. Reduce the cap on eligible non-administrative internal software development expenditure from $25 million to $3 million per business, per year. This would apply from the 2027–28 income year. The Bill would modernise the non-resident contractors’ tax ( NRCT ) rules to reduce withholding and compliance costs while maintaining protection of the New Zealand tax base. The monetary de minimis threshold would be increased from $15,000 to $75,000 or less per contract payment in a 12-month period, so payers would not have to withhold NRCT below this new threshold. The Bill would also confirm that both the monetary and day-count de minimis thresholds would apply per payer (single payer view), so payers do not need to know about a contractor’s activities for other payers when determining whether they need to withhold NRCT. In addition, the Bill would exclude certain low-risk non-resident contractors from the NRCT rules when the payer has confirmed the contractor’s IRD or GST number and that the contractor has been registered with the Companies Office for at least 24 months before the relevant contract payment. These indicators show they are likely to be compliant with their New Zealand tax obligations. The proposals would apply from 1 April 2027. The Bill would make changes to the approved issuer levy ( AIL ) regime to simplify the regime and strengthen its integrity. The Bill would increase the threshold above which borrowers must file AIL returns monthly from $500 to $10,000. Borrowers below the threshold would move from six-monthly filing to annual filing. This would reduce compliance costs for smaller borrowers. This proposal would apply from 1 April 2027. The Bill would also allow Inland Revenue to deregister securities from the AIL regime when a borrower does not comply with their AIL obligations. A security may be re-registered later in appropriate cases. This gives Inland Revenue a more targeted integrity tool for non-compliance. This proposal would apply to securities registered on or after 1 October 2027. The Bill would also relocate the AIL provisions in the Stamp and Cheque Duties Act 1971 to a standalone Approved Issuer Levy Act. These AIL provisions are the only operative provisions in the Stamp and Cheque Duties Act 1971; all other provisions in that Act have been previously repealed. This would improve accessibility and transparency of the AIL rules without changing the substance of these provisions or outcomes for users of the regime. The Approved Issuer Levy Act would commence on 1 April 2027. The Bill would amend tax settings for taxable not-for-profits to increase certainty and reduce compliance costs while ensuring Inland Revenue is able to monitor compliance. The Bill would ensure that membership subscriptions and levies received by not-for-profits continue to be non-taxable. This proposal would apply from the 2027–28 income year. The Bill would also increase the statutory deduction for smaller taxable not-for-profits to a maximum of $10,000. Not-for-profits with net income of more than $10,000 would no longer be eligible for the statutory deduction. The Bill would also remove income tax return filing requirements for smaller not-for-profits. It would also expand the set of customers that payers of interest must report to Inland Revenue on to include resident withholding tax-exempt customers. These proposals would apply from the 2027–28 income year, with the exception of the reporting proposal, which would apply from 1 April 2028. The Bill would enable in-year refunds of donation tax credits. Eligible donors would be able to receive donation tax credit refunds during the tax year rather than waiting until after year-end. The Bill would also allow donors to transfer their donation tax credit directly to a charity. This proposal would apply from 1 April 2028. The Bill would simplify the tax treatment of honoraria paid to volunteers of not-for-profit organisations. Currently, honoraria are generally treated as schedular payments, which creates obligations for the organisations and separate end-of-year ACC levy consequences for volunteers. The Bill would extend the treatment currently available for Fire and Emergency New Zealand volunteer honoraria to all not-for-profits, allowing not-for-profits to treat volunteer honoraria as salary or wages instead of schedular payments. This treatment would be optional, so organisations may continue using schedular payment treatment if preferred. The Bill would also ensure the treatment does not trigger KiwiSaver obligations for the organisation for the honoraria. This proposal would apply from 1 April 2028. The Bill would repeal the income tax exemption for non-resident charities that earn investment income in New Zealand but are not established here, do not have a strong connection to New Zealand, and are not registered under the Charities Act 2005. Repealing this exemption would align the tax treatment of these entities with other non-residents. This proposal would apply from 1 April 2028. Under current law, trustees can allocate income to a tax-exempt beneficiary without actually paying the money to the beneficiary. This raises integrity concerns, for instance when the beneficiary is a charity, because the income can be exempt income despite not actually being made available for charitable purposes. The Bill would introduce an integrity measure for private trusts that allocate income to tax-exempt beneficiaries. It would require income allocated by a private trust to a tax-exempt beneficiary to be paid into an account the beneficiary has with a financial institution within the required period to be tax-exempt. If the amount is not paid within that period, it would be treated as trustee income for certain purposes and taxed at a 39% rate. This proposal would apply from the 2028–29 income year. The Bill would amend the student loan arrest-at-border offence provision for overseas-based borrowers. Before a warrant can be sought, the Commissioner must prove that the borrower knowingly failed to engage and pay the outstanding debt after receiving a notification. The amendment addresses cases when the borrower has deliberately avoided notifications. In such cases, the amendment would allow the Commissioner to instead rely on earlier engagement with the borrower to establish that the borrower had sufficient knowledge of their obligations and knowingly chose not to comply. This proposal would apply from the day after the Bill receives Royal assent. The Bill would clarify that Inland Revenue has authority to use automated decision-making ( ADM ) for tax and social policy administration purposes. This would provide legislative certainty for existing and future use of ADM for high volume, clear, rules-based decisions. The Bill would also require Inland Revenue to develop a standard governing the operational use of ADM. The standard is intended to ensure neutrality and non-discrimination, accuracy and reliability, transparency, monitoring, and suitable contact channels for customers who require further information about decisions that impact them. The Office of the Privacy Commissioner and the Human Rights Commission would be required to be consulted on approval of the standard, and the standard would need to be published and reviewed at least every three years. Principles for the standard are specified in the Bill. This proposal would apply from the day after the Bill receives Royal assent. The Bill would introduce two targeted simplification measures for cryptoassets. The first would apply to certain decentralised finance transactions where cryptoassets are provided to another person or pool and equivalent cryptoassets are returned. The Bill proposes a cost-base preservation rule modelled on the share-lending rules. This means the temporary transfer of a cryptoasset would not create an interim taxing point when there is no material change in the taxpayer’s economic position. If there is any taxable gain or loss, it would be recognised when the cryptoasset is finally disposed of. The second measure would exclude qualifying cryptocurrencies that have a stable value relative to a fiat currency from the rule that taxes disposals of personal property acquired with a purpose of disposal. This supports the use of qualifying cryptocurrencies as payment technology without changing the general tax treatment of speculative cryptoasset gains. These proposals would apply from 1 April 2027. Under current law, if an electricity account holder is GST-registered for another taxable activity, the sale of surplus electricity to an electricity retailer is subject to GST at the standard rate. The retailer may claim an input tax deduction for its purchase of the electricity. However, some GST-registered account holders do not realise they must return GST on the sale, creating a revenue mismatch. The Bill would address this issue, while maintaining New Zealand’s broad-base GST framework, by zero-rating supplies of surplus electricity exported to the grid from residential premises. The change would apply from 1 April 2027. The Bill proposes six New Zealand charities with overseas charitable purposes be granted overseas donee status and added to the list of organisations in Schedule 32 of the ITA. The additions to the list would apply from 1 April 2026. Four of the additions are time limited for seven years until 31 March 2033. The Bill also removes one organisation from Schedule 32 because it is no longer a registered charity. The Bill contains a significant number of amendments of a minor or remedial and technical nature. These include: allowing lessees of farmland to deduct the residual tax book value of their land improvements to the leased land in the year in which they cease business when the land improvements have been destroyed by circumstances beyond the lessee’s control, such as a natural disaster; allowing GST deductions for a broader range of goods and services acquired before GST registration; a clearer framework for correcting GST errors and inaccuracies; allowing non-residents to ignore certain zero-rated supplies for the purpose of the GST registration threshold; clarifying when a non-resident supplier is treated as having a fixed or permanent place in New Zealand for GST purposes; amendments to the GST grouping provisions; specifying the cost base for assets received as redress under a Treaty of Waitangi settlement; increasing the straight-line method threshold in the financial arrangements rules to $3 million; aligning the beginning of transitional residence entitlements with when an individual “tie breaks” as a tax resident to New Zealand under a double tax agreement (if applicable); allowing deductions for the cost of abandoned “software as a service” configuration, customisation, or integration development work; allowing resident withholding tax on dividends to be deducted at 39% to align with the top marginal tax rate; simplifying compliance with the global anti-base erosion rules; ensuring that the Investment Boost measure enacted as part of Budget 2025 achieves its policy intent; allowing 16- and 17-year-olds with estranged guardians to contract alongside a principal caregiver receiving the Unsupported Child’s Benefit to enrol in KiwiSaver; introducing new intermediary categories for digital service providers and bookkeepers, and strengthening integrity measures for existing intermediary categories; clarifying the definition of improvement for the depreciation rules; and aligning permitted distributions for incorporated societies with the Incorporated Societies Act 2022. Several minor maintenance items, consisting mainly of correcting minor faults of expression, readers’ aids, and incorrect cross-references, are also addressed in the Bill. Details of further remedial amendments are included in the commentary to the Bill. REGULATORY IMPACT STATEMENTS The Inland Revenue Department produced regulatory impact statements on 16 April 2026, 31 July 2026, 12 August 2026, 17 August 2026, 18 August 2026, 19 August 2026, and 26 August 2026 to help inform the main policy decisions taken by the Government relating to the contents of this Bill. Copies of these regulatory impact statements can be found at— https://www.taxpolicy.ird.govt.nz/publications/2026/ria-fbt-simplification-tax-bill https://www.regulation.govt.nz/publications-and-resources/regulatory-analysis-summaries/ REGULATORY ANALYSIS SUMMARIES The Inland Revenue Department prepared regulatory analysis summaries on 30 July 2026, 3 August 2026, and 5 August 2026 to help inform the main policy decisions taken by the Government relating to the contents of this Bill. Copies of the regulatory analysis summaries can be found at— https://www.taxpolicy.ird.govt.nz/publications/2026/ria-fbt-simplification-tax-bill https://www.regulation.govt.nz/publications-and-resources/regulatory-analysis-summaries/ CONSISTENCY WITH PRINCIPLES OF RESPONSIBLE REGULATION The Inland Revenue Department provided the following documents relating to its review of this Bill, and its process for developing it, for consistency with the principles of responsible regulation under the Regulatory Standards Act 2025: a consistency accountability statement on 26 August 2026: a summary of underpinning analysis on 26 August 2026. Copies of these documents can be found at— https://www.taxpolicy.ird.govt.nz/publications/2026/cas-fbt-simplification-tax-bill The Inland Revenue Department considers that a statement from the responsible Minister under section 11(b) of the Regulatory Standards Act 2025 is not required for this Bill. CLAUSE BY CLAUSE ANALYSIS Clause 1 is the Title clause. Clause 2 gives the dates on which the clauses of the Bill come into force. ANNUAL RATES OF INCOME TAX Clause 3 sets the annual rates of income tax for the 2026–27 tax year. AMENDMENTS TO INCOME TAX ACT 2007 Clause 4 provides that Part 2 amends the Income Tax Act 2007. Clause 5 amends section CB 33 to correct the terminology. Clause 6 makes a consequential amendment to section CD 39 to correct a cross-reference. Clause 7 amends section CE 1BA. Subclause (1) ensures that the tax treatment applying for certain employee reimbursement also applies to expenditure on account of an employee. Subclause (2) clarifies that subsection (3) applies to amounts paid as employment income and the payments are not subject to FBT. Subclause (3) clarifies the tax treatment that applies when an employer chooses to treat a reimbursing payment as an unclassified benefit. Clause 8 amends section CH 1 to include cryptoasset-lending rights in the closing value adjustment rules so that the value determined under section ED 1 is treated as income in the same manner as a share-lending right. Clause 9 amends section CQ 5 to increase the FIF de minimis threshold from $50,000 to $100,000 and to ensure the increased threshold only applies for the 2026–27 and later income years. Clause 10 inserts new section CW 8C to exempt income derived from disposing of a qualifying cryptocurrency that would otherwise be taxable under section CB 4. Clause 11 amends section CW 16B to insert a cross-reference. Clause 12 amends section CW 41. Subclause (1) repeals section CW 41(5)(b) because it is redundant. Subclause (2) repeals section CW 41(5)(c) so that non-business income sourced in New Zealand by certain non-resident charities is not exempt income. Clause 13 amends section CW 42 to update cross-references. Clause 14 inserts new section CW 44B to make income of a mutual character derived by a not-for-profit organisation exempt income, so long as this would not be income under the usual income provisions. Clause 15 amends section CW 47 by adding the Greyhound Racing Transition Agency to the list of racing organisations that derive exempt income. Clause 16 amends section CW 55BA to remove an incorrect section reference. Clause 17 amends section CW 55BAA to extend the income tax exemption for industry skills boards to companies wholly owned by 1 or more industry skills boards and to ensure the exemption applies only when persons with control over the company cannot direct or divert amounts derived by the company for their own benefit or advantage. Clause 18 replaces section CX 6 to simplify the FBT rules for motor vehicles, removing references to the days that a vehicle is “made available” for an employee’s private use, work-related vehicles, and emergency calls, and inserting a cross-reference to section RD 29. Clause 19 repeals section CX 8 as a consequence of removing the made available test for motor vehicles. Clause 20 amends section CX 17 to allow close companies to elect to use the motor vehicle expenditure rules in subpart DE if the only benefits being provided are unclassified benefits and no more than 2 motor vehicles. Clause 21 inserts new section CX 19E to introduce a definition of emergency vehicle. Clause 22 repeals section CX 34. Clause 23 replaces section CX 36 to amend the meaning of private use of a motor vehicle and define incidental travel. Clause 24 inserts new section CX 36B to introduce a definition for branded vehicle. Clause 25 repeals section CX 38. Clause 26 inserts new section CX 58C , which excludes from income tax the beneficiary income of a tax-exempt entity when new section HC 38B applies. Clause 27 amends section DB 40B to allow a deduction for expenditure on unsuccessful software development projects when, if completed, the project would have resulted in the taxpayer having depreciable intangible property consisting of either a right to use the copyright in the software or a right to use the software. Clause 28 amends section DB 46 to ensure the availability of a 20% new investment asset deduction for expenditure incurred in remedying a contaminant does not prevent the remaining 80% from being deducted under section DB 46. Clause 29 amends section DB 49 to include cryptoasset-lending rights in the opening value adjustment rules so that a deduction is available for the value carried forward from the previous income year in the same manner as a share-lending right. Clause 30 amends section DB 66 to clarify the relationship between that section and section DB 40B. Clause 31 amends section DB 67 to clarify the relationship between that section and section DB 40B. Clause 32 amends the definition of new investment asset in section DI 4. Subclauses (1), (2), and (4) include an aircraft engine and aircraft engine overhaul expenditure, to the extent it produces a significant increase in the performance of the aircraft engine, as new investment assets. Subclause (3) ensures the definition aligns with the newly amended definition of improvement in section EE 67. Clause 33 makes a consequential amendment to section DI 4B to update a cross-reference. Clause 34 amends section DI 6 to ensure the amount of a new investment asset deduction is taken into account when determining a deduction under sections DB 46 and DW 5. Clause 35 amends section DN 6 to increase the FIF de minimis threshold from $50,000 to $100,000 and to ensure the increased threshold only applies for the 2026–27 and later income years. Clause 36 amends section DO 5. Subclauses (1), (2), and (4) make consequential amendments to reflect new terminology. Subclause (3) ensures that removal costs of listed horticultural plants that are destroyed are immediately deductible. Subclause (5) ensures that a lessee who has borne the economic cost of listed horticultural plants on leased land is able to deduct the residual tax book value of the plants when they cease business if the improvements have been destroyed or made useless through circumstances outside the lessee’s control. In addition, the amendments provide that if a significant portion of the planted area has been destroyed and the remaining plants are no longer economically viable, a lessee may deduct the residual tax book value of the remaining, commercially unusable, plants. This is provided the lessor documents in writing that neither they, nor a future lessee, will be able to use those plants to derive income. Clause 37 replaces section DO 6 to improve the wording and terminology and to address the way formula components and key definitions were previously spread across multiple sections. Clause 38 makes a consequential amendment to section DO 7 to update the terminology. Clause 39 replaces section DO 8 to remove the former definitions of planting and plot and provide a new definition of combined planting. Clause 40 repeals section DO 9 because it is redundant following the rewriting of section DO 6. Clause 41 amends section DO 10 to correct an unintended wording circularity. Clause 42 amends section DO 11. Subclause (1) corrects some cross-references. Subclause (2) ensures a lessee who has borne the economic cost of land improvements on leased land is able to deduct the residual tax book value of the improvements when they cease business if the improvements have been destroyed or made useless through circumstances outside the lessee’s control. Clause 43 amends section DV 8. Subclause (1) replaces references to “non-profit body” with “not-for-profit body” and links with the new definition for “not-for-profit” body in section YA 1, and applies on or after the 2024–25 and later income years. Subclause (2) increases, from $1,000 to $10,000, the maximum deduction for not-for-profit organisations, and applies on or after the 2027–28 and later income years. Clause 44 amends section EA 1 to apply the matching rules to a cryptoasset supplier’s cryptoasset-lending right, ensuring that cryptoasset lending arrangements are valued consistently with share-lending arrangements and do not give rise to interim gains or losses when cryptoassets are transferred and later returned. Clause 45 amends section ED 1 to ensure that a cryptoasset-lending arrangement does not trigger interim income or expenditure by valuing the cryptoasset-lending right and any returned cryptoasset at the original cryptoasset’s cost immediately before the transfer. Clause 46 amends section EE 38 to correct a minor fault of expression. Clause 47 amends section EE 50 to restore the intended operation of the depreciation apportionment rules by removing the concurrent use requirement and refining qualifying use days to prevent over-allocation of deductions for assets used for non-qualifying purposes. Clause 48 amends the definition of improvement in section EE 67 to clarify that capital expenditure on an item of depreciable property that alters, extends, or repairs the item need not necessarily increase the asset’s capital value. Clause 49 inserts new subpart EV to deal with the valuation of Treaty of Waitangi settlement redress assets. New section EV 1 provides that the cost of a redress asset is treated as the market value of the asset at the time it is transferred to, or otherwise comes to be held by, the recipient entity. Clause 50 amends section EW 5. Subclause (1) updates a cross-reference. Subclause (2) treats a cryptoasset-lending arrangement as an excepted financial arrangement, consistent with the treatment of share-lending arrangements. Subclause (3) repeals the requirement that a person be a cash basis person in order for a foreign currency loan used for a private or domestic purpose to be an excepted financial arrangement. Subclause (4) inserts new subsection (20B) to provide that a foreign currency transaction account that is located outside New Zealand and used for a private or domestic purpose is an excepted financial arrangement. Subclause (5) replaces section EW 5(25) to provide that, when determining whether a variable principal debt instrument qualifies as an excepted financial arrangement, the value of a variable principal debt instrument denominated in a foreign currency is determined using the valuation methodology in section EW 57(2)(d), so that exchange rate movements alone do not affect eligibility for the exception. Clause 51 amends section EW 7 to update a cross-reference. Clause 52 amends section EW 13 to provide that a person is not required to use a spreading method for a financial arrangement that is a quarantined foreign financial arrangement. Clause 53 inserts new section EW 13B to require an adjustment when a financial arrangement becomes or ceases to be a quarantined foreign financial arrangement, preventing timing mismatches by reconciling amounts recognised before and after the change in treatment. Clause 54 amends section EW 17 to increase the threshold for using the straight-line method under the financial arrangement rules from $1,850,000 to $3,000,000 to reduce compliance costs for taxpayers with relatively small financial arrangement portfolios. Clause 55 inserts new section EW 22B to provide an elective regime for certain taxpayers to calculate financial arrangement income and expenditure in a foreign currency. Clause 56 amends section EW 25 to make a corresponding change to the consistency rule for using the straight-line method to ensure it aligns with the increased $3,000,000 threshold. Clause 57 amends section EW 31 so that an adjustment amount calculated under new section EW 22B is recognised through the base price adjustment calculation for the relevant financial arrangement, rather than when the adjustment is calculated. Clause 58 amends section EW 36 to update a cross-reference. Clause 59 amends section EW 37 to update a cross-reference. Clause 60 amends section EW 40 to update a cross-reference. Clause 61 amends section EW 41. Subclause (1) updates a cross-reference. Subclause (2) amends the section so it does not apply to accrued entitlements under a financial arrangement acquired by a person for the purpose of obtaining an Active Investor Plus Visa. Clause 62 amends section EW 46D to ensure the section applies to arrangements involving economic debt remission while excluding genuine shareholder-funded recapitalisations when third-party debt is repaid in full. Clause 63 repeals section EW 60. Clause 64 amends section EX 21. Subclauses (1) and (2) amend section EX 21(7) to update the cash basis person thresholds so that they align with the increased thresholds in section EW 57. Subclause (3) inserts new subsection (8B) to override the requirement for financial arrangement amounts of a controlled foreign company to be calculated in New Zealand dollars when the company is wholly owned by a natural person who elects to apply the foreign currency calculation regime in new section EW 22B . Clause 65 amends section EX 37 to ensure New Zealand shareholders are eligible for the 10-year exemption regardless of the method used by a New Zealand business to list on a foreign exchange. Clause 66 amends section EX 44 to remove a redundant reference to a repealed provision. Clause 67 amends section EX 46. Subclause (1) removes a redundant reference to a repealed provision. Subclause (2) ensures that a person using the attributable FIF income method may continue to do so if their income interest falls below 10% and they continue to hold an active role in the FIF. New subsection (3B)(a)(ii) also extends this to taxpayers who had an income interest of 10% or more the preceding year but who did not use the attributable FIF income method in that preceding year because the interest was not an attributable interest in the FIF for the person in that preceding year. Subclause (3) provides that a person is not precluded from using the comparative value method for their listed FIFs if they use the cost method for their unlisted FIFs. Subclause (4) expands the application of the RAM for calculating FIF income or loss to all New Zealand residents. Subclause (5) includes the relevant definitions for the RAM within section EX 44. Clause 68 repeals section EX 46B as a consequence of the expansion of the RAM in section EX 44. Clause 69 amends section EX 56B. Subclauses (1), (6), and (7) amend the section as a consequence of the expansion of the RAM to all New Zealand residents. Subclauses (2), (3), (4), and (5) amend the section to ensure that the exit tax under the RAM, which currently applies if a person becomes a non-resident, is also triggered if a person becomes treated under a tax treaty as not being resident in New Zealand. Clause 70 amends section EX 58 to allow a person holding an indirect attributing interest in a FIF through a CFC to be able to choose a calculation method available to them as an individual for calculating the FIF income or loss, rather than being confined to the calculation methods available to the CFC. Clause 71 amends section EX 62 to remove the requirement that an election to change from RAM to any other method is irrevocable. It is replaced with a requirement that the person must have used RAM for at least 5 years before being able to change to another method, and the person may also not change from that other method back to RAM for at least 5 years. Clause 72 amends section EX 63 to update cross-references. Clause 73 amends section EX 65 to reflect the increase in the FIF de minimis threshold. Clause 74 amends section EX 68 to reflect the increase in the FIF de minimis threshold. Clause 75 amends section EZ 16 to include a definition of car and motor vehicle. Clause 76 makes a consequential amendment to section FC 8 as a result of the repeal of section EW 60. Clause 77 amends section FE 2 for a minor style change. Clause 78 amends section FE 7C to ensure the section works as intended. Clause 79 inserts new section FE 7D as a result of remedial amendments made to section FE 7C. It restructures the definition of eligible infrastructure entity into a standalone section to clarify that there are alternative pathways for qualification. A person qualifies either under subsection (1)(a) or by meeting the requirements in subsections (2) to (4), rather than all requirements forming a single combined test. Clause 80 replaces and amends section FE 19. Subclause (1) replaces section FE 19 to replace the fixed 6% with a capital threshold, increasing the minimum capital required under the thin capitalisation rules for foreign-owned New Zealand banking groups to better align with Tier 1 capital requirements and prudential capital buffer requirements set by the Reserve Bank of New Zealand. Subclause (2) amends section FE 19 to allow the capital threshold used in the banking group equity threshold calculation to be adjusted when the Reserve Bank of New Zealand changes the countercyclical capital buffer. Clause 81 inserts new section FE 19B to provide for temporary adjustments to the capital threshold when the Reserve Bank of New Zealand changes the countercyclical buffer in response to changing economic conditions, aligning the thin capitalisation rules for banking groups with prudential capital buffer settings. Clause 82 amends section GC 1 to ensure that transfers under a cryptoasset-lending arrangement are not subject to the market value substitution rule, which would otherwise treat certain disposals of trading stock as occurring for market value. Clause 83 amends section HB 11 to align the loss limitation rule for look-through companies with that for limited partnerships by allowing deductions to the extent they match assessable income allocated to the shareholder, correcting the current misalignment that can result in shareholders being taxed on income despite having corresponding deductions. Clause 84 amends section HC 7. Subclauses (1) and (2) correct cross-references. Subclause (3) signposts new section HC 38B and outlines the tax treatment applying to beneficiary income derived by a tax-exempt entity. Clause 85 amends section HC 17 to treat income from tax-exempt entities as trustee income for certain purposes under new section HC 38B . Clause 86 amends section HC 24 to signpost new section HC 38B . Clause 87 amends section HC 32 to remove an unnecessary subsection. Clause 88 inserts new section HC 38B to require income allocated by a private trust to a tax-exempt beneficiary to be paid into an account with a financial institution of the beneficiary within a specified period to be tax-exempt. If the amount is not paid within that period, it is treated as trustee income for certain purposes and taxed at a 39% rate. Clause 89 amends section HC 40 to update a cross-reference. Clause 90 amends section HD 4 to remove the requirement for the Commissioner’s approval to be obtained for a beneficiary to undertake a trustee’s tax duties. Clause 91 amends section HF 4. Subclause (1) removes a taxable bonus issue from the section as a consequence of a taxable bonus issue being included in section HF 7. Subclause (2) clarifies the valuation approach for low- or no-interest loans to Māori authority members to provide certainty for Māori authorities. Clause 92 amends the definition of taxable Māori authority distribution in section HF 7 to clarify the position of taxable bonus issues for Māori authorities. Clause 93 amends table H1 to correct incomplete and incorrect references in the table. Clause 94 amends section HM 21 to correct a fault of expression, replacing “parts A and B” with “Part A or B”. Clause 95 amends section HM 36 to correct a cross-reference. Clause 96 amends section HM 46 by inserting cross-references for clarity. Clause 97 amends section HR 8. Subclause (1) corrects a cross-reference. Subclauses (2), (3), (4), and (5) align the beginning of a person’s transitional residence period with the time at which the person ceases to be treated as not resident in New Zealand under a double tax agreement, if applicable. Clause 98 amends section HR 12. Subclause (1) ensures that the charity deregistration tax rules do not apply to a person that qualifies for the income tax exemption in section CW 55BAA, recognising that the person remains exempt from income tax despite ceasing to be a registered charity. Subclauses (2) and (3) make consequential amendments as a result of the amendment to section CW 41(5)(c). Clause 99 amends section HZ 13 to ensure that the applied Global Anti-Base Erosion (GloBE) rules apply in New Zealand as intended. Clause 100 amends section LA 7 by signposting new section LD 3A . Clause 101 amends section LD 1. Subclause (1) clarifies that a donation tax credit cannot include any amount already claimed as an in-year tax credit. Subclause (2) esnures that bookkeepers are treated consistently with tax agents and representatives when applying for charitable donation tax credit refunds on behalf of taxpayers. Clause 102 inserts new section LD 3A , which introduces the in-year tax credit for charitable and other public benefit gifts so that taxpayers can claim their refunds throughout the year rather than waiting until the end of the tax year. Clause 103 inserts new section LE 4C , which outlines the tax treatment for tax credits when new section HC 38B applies. Clause 104 amends section LS 2 to remove a redundant cross-reference and correct the list of defined terms. Clause 105 amends section LY 1 to signpost the new in-year R&D payment regime and to ensure that a person’s R&D tax credit is reduced by the amount of any in-year R&D payments received for the income year. Clause 106 inserts new section LY 11 to provide for approved persons to receive advance payments of their expected R&D tax credits during an income year and for those payments to be reconciled against the person's final entitlement at the end of the income year. Clause 107 makes a consequential amendment to section OK 2 to ensure a credit does not arise in a Māori authority credit account as a result of a transfer from a tax pooling account. Clause 108 inserts new sections OK 3B and OK 3C to clarify the application of tax pooling accounts for Māori authorities by including provisions relating to credits arising from tax pooling accounts in the Māori authority credit account provisions. The provisions align with the imputation credit account provisions in sections OB 5 and OB 6. Clause 109 inserts new section OK 9B to replicate the imputation credit account provision in section OB 26 for Māori authorities and Māori authority credit accounts. Clause 110 inserts new sections OK 13B and OK 13C to clarify the application of tax pooling accounts for Māori authorities by including provisions relating to debits arising from tax pooling accounts in the Māori authority credit account provisions. The provisions align with the imputation credit account provisions in sections OB 34 and OB 35. Clause 111 makes consequential amendments to table O17 to reflect the changes made to the Māori authority credit account provisions to provide for tax pooling accounts. Clause 112 makes consequential amendments to table O18 to reflect the changes made to the Māori authority credit account provisions to provide for tax pooling accounts. Clause 113 inserts new section OZ 19 to ensure that the tax position of Māori authorities that have utilised tax pooling accounts before the 2026–27 income year is validated. Clause 114 inserts new section RA 15B to provide the due date for tax payable when a person’s in-year R&D payments exceed their final R&D tax credit entitlement for the income year. Clause 115 amends section RD 5 to enable not-for-profit organisations to treat honoraria paid to volunteers as salary and wages if they so choose. Clause 116 amends section RD 8. Subclause (1) increases the monetary exemption threshold from $15,000 to $75,000 and ensures that the monetary and day-count exemptions apply on a contract basis so that the payer of NRCT only needs to assess their own contract when determining if an exemption is available. Subclause (2) excludes a contract payment for a contract activity or service made to a branch, limited partnership, or representative office from being a schedular payment if certain criteria are met. Subclause (3) enables not-for-profit organisations to treat honoraria paid to volunteers as salary and wages rather than a schedular payment. Clause 117 makes consequential amendments to section RD 25 to update a cross-reference and a section heading. Clause 118 amends section RD 28 to improve the wording for clarity and align with amended Schedule 5. Clause 119 inserts new section RD 28B , which sets out the requirements for certain categories of motor vehicles to be a branded vehicle. Exceptions are provided for vehicles purchased, leased, or rented by an employer before the date the Bill is introduced, and for vehicles owned or leased by smaller employers carrying on a farming business. The section also provides the Commissioner with the discretion to waive branding requirements in certain circumstances. Clause 120 inserts new section RD 28C , which sets out how to determine the extent of an employee’s private use of a motor vehicle under the FBT rules. Clause 121 amends section RD 29 to update the formulas to calculate the extent of private use of a motor vehicle under the revised FBT rules. Clause 122 repeals section RD 30. Clause 123 repeals section RD 31. Clause 124 repeals section RD 32. Clause 125 amends section RD 56 to update cross-references. Clause 126 amends section RD 57 to update cross-references. Clause 127 amends section RM 10 to allow the Commissioner or a taxpayer to apply an in-year R&D payment to satisfy a liability under the Inland Revenue Acts in the same manner as a tax refund or refundable tax credit. Clause 128 amends section RP 17B to ensure that taxpayers may use tax pooling accounts to satisfy interest payable on excess in-year R&D payments. Clause 129 amends section YA 1. Subclause (2) inserts a new definition of Active Investor Plus Visa. Subclause (3) inserts a new definition of AIM method. Subclause (4) inserts a new definition of bookkeeper. Subclause (5) inserts a new definition of branded vehicle. Subclause (6) replaces the definition of car. Subclause (7) inserts a new definition of claim period. Subclause (8) inserts a new definition of combined planting. Subclause (9) amends the definition of company to ensure a Māori authority that has elected to be a Māori authority as a company is not excluded from being a company because it is treated as a trustee under the Te Ture Whenua Maori Act 1993. Subclause (10) inserts a new definition of countercyclical buffer. Subclause (11) inserts new definitions of cryptoasset-lending arrangement, cryptoasset-lending right, and cryptoasset supplier. Subclause (12) repeals the definition of day. Subclause (13) inserts a new definition of domestic systemically important bank. Subclause (14) replaces the definition of eligible infrastructure entity. Subclause (15) repeals the definition of emergency call. Subclause (16) inserts a new definition of emergency vehicle. Subclause (17) inserts a new definition of equity threshold. Subclause (18) amends the cross-reference in the definition of excluded RAM interest. Subclause (19) amends the cross-reference in the definition of extended RAM interest. Subclause (20) amends the cross-reference in the definition of extended RAM taxpayer. Subclause (21) amends the definition of finance lease to exclude ordinary software use arrangements, while retaining arrangements that provide an exclusive right to use the software or ownership of, or an option to acquire ownership in, the software. Subclause (22) amends the definition of hire purchase agreement. Subclause (23) inserts a new definition of incidental travel. Subclause (24) inserts a new definition of industry skills board subsidiary. Subclause (25) inserts a new definition of in-year R&D payment. Subclause (26) inserts a new definition of labour-related cap. Subclause (27) updates a cross-reference in the definition of listed horticultural plant. Subclause (28) replaces the definition of main benefit. Subclause (29) repeals the definition of main benefit equivalent assistance. Subclause (30) amends the definition of motor vehicle. Subclause (31) inserts a new definition of not-for-profit organisation. Subclause (32) inserts a new definition of original cryptoasset. Subclause (33) inserts a new definition of payment. Subclause (34) repeals the definition of planting. Subclause (35) repeals the definition of plot. Subclause (36) amends the definition of private use to update a cross-reference. Subclause (37) inserts a new definition of qualifying cryptocurrency. Subclause (38) inserts a new definition of quarantined foreign financial arrangement. Subclause (39) amends the cross-reference in the definition of RAM interest. Subclause (40) repeals the definition of RAM taxpayer. Subclause (41) inserts new definitions of recipient entity and redress asset for the purposes of the valuation of Treaty of Waitangi settlement redress assets under new section EV 1 . Subclause (42) repeals the definition of replaced area fraction. Subclause (43) updates a cross-reference in the definition of replacement plant. Subclause (44) replaces the definition of representative. Subclause (45) inserts a new definition of returning cryptoasset transfer. Subclause (46) inserts a new definition of tax-exempt entity. Subclause (47) inserts a new definition of UTPR safe harbour guidance. Subclause (48) repeals the definition of work-related vehicle. Clause 130 makes a consequential amendment to section YD 1 to update a cross-reference. Clause 131 amends section YD 1B to clarify the non-resident visitor rules to ensure that if a person, or their spouse or partner, receives a Working for Families entitlement for a previous period when the person was a non-resident visitor, that person will lose their non-resident visitor status for that previous period and that any other person will be unable to rely on the person’s non-resident visitor status from the date of a successful application for Working for Families. Clause 132 replaces section YD 4(17D)(b) to broaden an exclusion for fees for technical, management, or similar services from the rule that deems income to have a New Zealand source when New Zealand may tax the income under a double tax agreement. The amendment ensures the exclusion applies to those fees under any double tax agreement, rather than only under specified agreements. Clause 133 amends Schedule 1. Subclause (1) sets the tax rate at 39% if a tax-exempt beneficiary is not paid in money. Subclause (2) replaces clause 5 of Part D, to provide that resident withholding tax may be deducted from dividends at 39% if the payer and recipient agree. Clause 134 amends Schedule 5 by splitting it into Part A and Part B. Part A is a simplified form and is updated for new vehicle valuation amounts, including different valuation percentages for standard vehicles, hybrid vehicles, and electric vehicles. Part B comprises a table setting out the categories to determine private use percentages for motor vehicles. Clause 135 amends Schedule 20 to remove the reference to spat being collected to reflect the change to industry practice and ensure certain operators are not unintentionally excluded. Clause 136 amends Schedule 21. Subclause (1) inserts a new clause 5 in Part A to exclude prospecting for, exploring for, and drilling for minerals, petroleum, natural gas, or geothermal energy from the definition of a core R&D activity. Subclause (2) inserts a corresponding new clause 5 in Part B to exclude those activities from the definition of a supporting R&D activity. Clause 137 amends Schedule 21B, Part B. Subclause (1) replaces clause 2 to ensure that the existing exclusion for the acquisition cost of depreciable property also applies to property that is deductible under the mining and petroleum mining regimes and would otherwise be depreciable property but for section EE 7(j). Subclause (2) replaces clause 3 to ensure that expenditure contributing to the cost of property that is deductible under the mining and petroleum mining regimes is treated consistently with expenditure contributing to the cost of depreciable property. Subclause (3) repeals clause 3B because the reinstated Schedule 21 activity exclusions for prospecting, exploration, and drilling activities make the clause unnecessary. Subclause (4) amends clause 16 to reduce the cap on internal software development expenditure that may qualify for R&D tax credits from $25 million to $3 million per income year. Clause 138 amends Schedule 32, which lists overseas-based charities to which a monetary donation entitles the donor to a tax credit. Clause 139 amends Schedule 35 to add Ferry Holdings Limited as a public-purpose Crown-controlled company. Clause 140 inserts Schedule 1 to make amendments to the listed provisions to correct the terminology relating to items in formulas. Clause 141 inserts Part 1 of Schedule 2 to make amendments to the listed provisions to insert the macron into “Māori”. AMENDMENTS TO GOODS AND SERVICES TAX ACT 1985 Clause 142 provides that Part 3 amends the Goods and Services Tax Act 1985. Clause 143 amends section 2(1). Subclause (2) inserts a new definition of applicable date, discovery period, recipient correction, return error, small-value threshold, supply error, supply inaccuracy, and tax effect, which are definitions related to the insertion of new subpart 3A relating to the correction of errors and inaccuracies. Subclause (3) amends the definition of consideration, donated goods and services, and unconditional gift by updating terminology, replacing references to “non-profit body” with “not-for-profit body”. Subclause (4) amends the definition of hire purchase agreement to clarify that land is excluded from the scope of hire purchase agreements. Subclause (5) amends the definition of local authority to insert the macron into Māori. Subclause (6) replaces the definition of non-profit body to better align with the Incorporated Societies Act 2022 and updates terminology by replacing “non-profit body” with “not-for-profit” body. Subclause (7) inserts a new definition of residential premises. Clause 144 amends section 2A by replacing references to “non-profit body” with “not-for-profit body”. Clause 145 amends section 3 by amending the definition of participatory security to include an interest in any unincorporated body. Clause 146 amends section 3A to provide that, for goods or services to which new section 20BA applies, the amount of input tax deductible is capped at the amount of output tax accounted for by the associated supplier. Clause 147 amends section 5 to clarify that the supplier’s tax treatment is not confined to what is indicated on their GST return. Clause 148 amends section 5B to update a cross-reference. Clause 149 amends section 8 to clarify that a non-resident does not have a fixed or permanent place in New Zealand because they or their employees work at the premises of a third-party client in New Zealand. Clause 150 amends section 11 by replacing a reference to “non-profit body” with “not-for-profit body”. Clause 151 amends section 11A to insert a new zero-rating rule for supplies of electricity to retailers when the electricity is generated at residential premises or is supplied through an installation control point associated with residential premises. Clause 152 amends section 14 by replacing a reference to “non-profit body” with “not-for-profit body”. Clause 153 amends section 15C to clarify that the Commissioner can change a registered person’s taxable period when the person fails to meet the requirement of section 15C(2) to apply to change from a 6-month taxable period within the timeframe required by that subsection. Clause 154 amends section 16 by replacing a reference to “non-profit body” with “not-for-profit body”. Clause 155 amends section 19A by replacing a reference to “non-profit body” with “not-for-profit body”. Clause 156 amends section 19D by replacing a reference to “non-profit body” with “not-for-profit body”. Clause 157 amends section 20. Subclauses (1) to (4) replace subsection (2)(b) to ensure that a supplier cannot make a deduction from its output tax for a supply outside the applicable time limits in section 19N(7) regardless of whether taxable supply information was provided. Subclauses (5) and (6) update cross-references. Subclause (7) includes an amount of input tax determined under new section 20BA in the calculation of tax payable. Subclause (8) deletes the proviso to subsection (3) as a consequence of new subpart 3A . Subclause (9) provides that, for goods or services to which new section 20BA applies, the full input tax deduction is the amount of input tax determined under new section 20BA . Subclause (10) replaces references to “non-profit body” with “not-for-profit body”. Subclause (11) updates cross-references. Clause 158 amends section 20A(4) to treat amounts received as consideration for a supply, correcting a conceptual error in which the amount itself is treated as the supply. Clause 159 inserts 3 new sections. New section 20BA allows input tax deductions to be claimed for goods and services acquired before registration when they subsequently start being used for making taxable supplies, subject to certain limitations. New section 20BAB qualifies how new section 20BA applies for goods and services acquired before incorporation and later reimbursed by the company. New section 20BAC qualifies how new section 20BA applies for goods and services acquired by a person before registration that are later used by a partnership of which the person is a member. Clause 160 repeals section 21B. Clause 161 amends section 21D to provide that, for goods or services to which new section 20BA applies, the full input tax deduction used in adjustment calculations is the amount determined under new section 20BA . Clause 162 amends section 21FB to provide that, for goods or services to which new section 20BA applies, the full input tax deduction used in permanent change-of-use calculations is the amount determined under new section 20BA . Clause 163 repeals section 22. Clause 164 amends section 25 as a consequence of the insertion of new subpart 3A for the correction of errors and inaccuracies. Clause 165 repeals section 25AAA as part of the repositioning and renumbering of the provision to include it as new section 39 in the new subpart 3A for GST errors and inaccuracies. Clause 166 repeals section 25AA as part of the repositioning and renumbering of the provision to include it as new section 38 in the new subpart 3A for GST errors and inaccuracies. Clause 167 repeals section 25AB as part of the repositioning and renumbering of the provision to include it as new section 37 in the new subpart 3A for GST errors and inaccuracies. Clause 168 inserts a new subpart 3A to provide a clearer framework for correcting GST errors and inaccuracies. Clause 169 amends section 43 to remove the requirement for the Commissioner to send a copy of a deduction notice to the registered person or liable person and replace this with a requirement for the Commissioner to notify the registered person or liable person of all the information in the deduction notice that relates to them. This will enable the Commissioner to issue consolidated deduction notices, which combine more than one person’s deduction notice information, to third parties, such as employers or banks. Clause 170 amends section 51(1D). Subclause (1) allows non-residents to ignore their supplies of exported services when determining whether they are required to register for GST. Subclause (2) replaces references to “non-profit body” with “not-for-profit body”. Clause 171 amends section 55. Subclause (1) amends section 55(1AE)(b) to restore the ability of GST groups to choose whether to disregard intragroup taxable supplies. If an intragroup taxable supply is not disregarded, the amendment treats the supply as made and received by the representative member as a registered person. Subclause (2) updates a cross-reference. Subclause (3) amends section 55(4) to allow a company to join or leave a GST group from a date determined by the Commissioner, rather than only from the beginning of a taxable period. Subclause (4) repeals section 55(4AA) because the amendment to section 55(4) makes it redundant. Clause 172 amends section 57B to include a cross-reference to new section 20BA . Clause 173 amends section 60CB to update cross-references. Clause 174 amends section 75 to insert the macron into “te reo Māori”. Clause 175 amends section 78AA to update cross-references. Clause 176 amends section 78BA to update cross-references. Clause 177 amends section 81B to update cross-references. Clause 178 amends section 88 to update the heading and replace references to “non-profit body” with “not-for-profit body”. Clause 179 inserts new section 95 . The section ensures that new section 36E , which treats an original assessment as correct for the purposes of the Tax Administration Act 1994 to the extent of prospective corrections of errors included in a GST return for a later taxable period, also applies for corrections made on or after 30 March 2022 but before new subpart 3A takes effect. This addresses the concern that shortfall penalties may be applicable for the original assessment in circumstances when a prospective section 25 correction has been made. AMENDMENTS TO TAX ADMINISTRATION ACT 1994 Clause 180 provides that Part 4 amends the Tax Administration Act 1994. Clause 181 amends section 3. Subclause (2) inserts a definition of bookkeeper. Subclause (3) amends the definition of Commissioner’s official opinion to clarify that a published finalised official statement of the Commissioner is sufficient to be relied upon as an official opinion without requiring separate notification to the taxpayer. Subclause (4) replaces the existing definition of provider of digital services with a broader definition of digital services provider that accommodates providers that only receive information from the Commissioner. Subclause (5) repeals the definition of extended model reporting standard for digital platforms. Subclause (6) repeals the definition of provider of digital services. Subclause (7) amends the definition of reporting platform operator. Clause 182 inserts new section 7B to provide the Commissioner with the authority to use automated decision-making. The new provision specifies the requirements for appropriate automated decision-making safeguards and provides for an approved standard to be prepared in consultation with the Privacy Commissioner and the Human Rights Commission and published by the Commissioner. The provision also requires the standard to be reviewed at least once every 3 years. Clause 183 amends section 22 to remove redundant references to the extended model reporting standard for digital platforms and expired regulation-making powers because the standard was not brought into force within the statutory timeframe. Clause 184 amends section 25E to require financial institutions to provide interest income information for customers that are exempt from resident withholding tax. Clause 185 amends section 25F to update a cross-reference. Clause 186 amends section 32M to include a reference to the new provision allowing the Commissioner to deregister a registered security for approved issuer levy purposes. Clause 187 makes a consequential amendment to section 41A to ensure that a redirection of a donation tax credit can be made to the donee organisation. Clause 188 inserts 2 new sections. New section 41BA sets out the rules for applying for a refund of an in-year tax credit a person has under new section LD 3A . New section 41BAB sets out the rules for the redirection of donation tax credits to donee organisations. Clause 189 amends section 42 to allow a partner who has elected to return partnership income using the partnership’s non-standard balance date to also include their share of the partnership's eligible R&D expenditure in their R&D tax supplementary return as if they had that balance date. Clause 190 inserts new section 43C , which provides that not-for-profit organisations with net income of $10,000 or less are not required to file income tax returns unless the Commissioner requires. Clause 191 amends section 68CB to extend the deadlines for general approval applications and variation applications relating to partnership R&D activities for partners who elect to return their share of the partnership's eligible R&D expenditure using the partnership’s non-standard balance date, by treating the end of the relevant income year as the later of the partner’s income year and the partnership’s income year. Clause 192 inserts two new sections. Subclause (1) inserts new section 68CG , which provides for applications to receive in-year R&D payments and for the Commissioner to approve a person and the amount of in-year R&D payments they may receive. Subclause (2) inserts new section 68CH to allow the Commissioner to extend RDTI filing deadlines or permit amendments to RDTI filings when the person took reasonable steps to participate in the RDTI regime and the filing failure or need for amendment arose from a genuine mistake or oversight or an event outside the person's control Clause 193 amends section 78I to remove requirements for a constituent entity to file a multinational top-up tax return if the entity has no top-up tax liability. Clause 194 amends section 78J to simplify the filing process for entities under the GloBE rules, allowing a constituent entity to file a multinational top-up tax return on behalf of all constituent entities in the group. Clause 195 inserts new section 90C to provide for a review of the vehicle valuation amounts in Schedule 5, Part A every four years. Clause 196 makes a consequential amendment to section 91AAB to update a cross-reference. Clause 197 repeals section 91AABB as a consequence of the extended model reporting standard for digital platforms not being brought into force. Clause 198 makes an amendment to section 91C as a consequence of the repeal of the estate and gift duties legislation. Clause 199 amends section 91CB to replace “non-profit body” with “not-for-profit body”. Clause 200 repeals section 105 as a consequence of the introduction of new section 7B , which authorises automated decision-making for the Commissioner. Clause 201 amends section 108. Subclause (1) establishes a time bar for constituent entities of a multinational group when they provide a GloBE information return but have no obligation to file a multinational top-up tax return. Subclause (2) makes a consequential amendment as a result of the time bar established for constituent entities of a multinational group. Subclause (3) amends section 108(1E) to ensure that the 1-year RDTI time bar does not apply when the Commissioner exercises the discretion in new section 68CH , with the result that the general 4-year time bar in section 108(1) applies instead. Clause 202 amends section 113A to remove references to goods and services tax because the correction of errors in relation to goods and services tax is now dealt with in new subpart 3A of the Goods and Services Tax Act 1985. Clause 203 inserts new section 120VF to provide for interest to be payable when a person's in-year R&D payments exceed their final R&D tax credit entitlement for an income year and to specify when that interest begins to accrue. Clause 204 amends section 124B to ensure that it signposts to digital services providers and bookkeepers. Clause 205 amends section 124D(1) to clarify that a person acts as a representative only once the requirements for representative status, including approval by the Commissioner, have been met. Clause 206 amends section 124F to prevent persons who have previously been removed, disallowed, or had approvals revoked on integrity grounds from becoming nominated persons unless the Commissioner determines otherwise. Clause 207 amends section 124G to broaden the Commissioner's discretion to disallow nominated persons by removing the existing requirement that the person be acting in a professional, fee-earning, or multiple-person capacity. Clause 208 amends section 124I to require PAYE intermediary applicants to satisfy an integrity of the tax system test and, if they are not natural persons, comply with the information requirements in section 124E. Clause 209 amends section 124J to allow the Commissioner to revoke approval as a PAYE intermediary if allowing the person to continue as a PAYE intermediary would adversely affect the integrity of the tax system. Clause 210 amends section 124W to require tax pooling intermediary applicants to satisfy an integrity of the tax system test and, if they are not natural persons, comply with the information requirements in section 124E. Clause 211 amends section 124X to allow the Commissioner to wind up a tax pooling account if allowing the person to continue as a tax pooling intermediary would adversely affect the integrity of the tax system. Clause 212 inserts two new sections and cross-headings. New section 124ZJ creates a new intermediary category for digital services providers. New section 124ZK creates a new intermediary category for bookkeepers. Clause 213 amends section 138E. Subclause (1) provides that a decision of the Commissioner under new section 68CG is a non-disputable decision. Subclause (2) provides that a decision of the Commissioner under new section 68CH is a non-disputable decision. Clause 214 amends section 142J to remove redundant references to the extended model reporting standard for digital platforms because the standard was not brought into force within the statutory timeframe. Clause 215 amends section 142K to remove redundant references to the extended model reporting standard for digital platforms because the standard was not brought into force within the statutory timeframe. Clause 216 amends section 143 to remove the redundant reference to the extended model reporting standard for digital platforms because the standard was not brought into force within the statutory timeframe. Clause 217 makes a consequential amendment to section 150 to remove a reference to repealed section 105. Clause 218 amends section 157 to remove the requirement for the Commissioner to send a copy of a deduction notice to the taxpayer and replace this with a requirement for the Commissioner to notify the taxpayer of all the information in the deduction notice that relates to them. This will enable the Commissioner to issue consolidated deduction notices, which combine more than one person’s deduction notice information, to third parties, such as employers or banks. Clause 219 amends section 185E to remove the redundant reference to the extended model reporting standard for digital platforms because the standard was not brought into force within the statutory timeframe. Clause 220 repeals section 185T as a consequence of the extended model reporting standard for digital platforms not being brought into force. Clause 221 amends section 226F to remove redundant references to the extended model reporting standard for digital platforms because the standard was not brought into force within the statutory timeframe. Clause 222 amends Schedule 1 to delete Acts that are spent and which will be repealed by this Bill from the list of Inland Revenue Acts. Clause 223 amends Schedule 7. Subclause (1) amends clause 16 to allow the Commissioner to inform persons when the approval of a digital services provider or bookkeeper acting for them has been revoked or disallowed. Subclause (2) updates the permitted disclosure provision in clause 18 to account for the new definition of digital services provider. Clause 224 inserts Part 2 of Schedule 2 to make amendments to the listed provisions in the Tax Administration Act 1994 to insert the macron into Māori. AMENDMENTS TO OTHER ENACTMENTS AND REPEALS Clause 225 sets out the clauses that amend the KiwiSaver Act 2006. Clause 226 amends section 4. Subclause (1) inserts a cross reference to an amendment to section RD 5 of the Income Tax Act 2007. Subclause (2) inserts a new definition of unsupported child’s benefit caregiver. Clause 227 amends section 35 to allow 16- or 17-year-olds to enrol in KiwiSaver if they jointly contract with a principal caregiver receiving the Unsupported Child’s Benefit. Clause 228 sets out the clauses that amend the Student Loan Scheme Act 2011. Clause 229 amends section 14 to ensure the legislation reflects the policy intent by clarifying that the establishment fee is only charged when a borrower first draws down on a loan contract. Clause 230 amends section 162A to address practical constraints on the Commissioner to notify persistently non-compliant borrowers. The amendment refines the provision by providing the Commissioner with the ability to rely on proof of the borrower’s knowledge of the default from previous communications if he is unable to provide a notification to the borrower, despite reasonable efforts to do so. Clause 231 amends Schedule 3 to ensure that when the “scheme pays” option is chosen for the payment of tax on funds transferred from overseas pensions, those funds are not included in a borrower’s income for student loan purposes. Clause 232 sets out the clauses that amend the Child Support Act 1991. Clause 233 amends the section 2 definition of income to ensure that when the “scheme pays” option is chosen for the payment of tax on funds transferred from overseas pensions, those funds are not included in a person’s income for child support purposes. Clause 234 amends the section 89B definition of income to ensure that when the “scheme pays” option is chosen for the payment of tax on funds transferred from overseas pensions, those funds are not included in a person’s income for the purposes of Part 5A. Clause 235 amends section 156 to remove the requirement for the Commissioner to send a copy of a deduction notice to the liable person and replace this with a requirement for the Commissioner to notify the liable person of all the information in the deduction notice that relates to them. This will enable the Commissioner to issue consolidated deduction notices, which combine more than one person’s deduction notice information, to third parties, such as employers or banks. Clause 236 sets out the clauses that amend the Taxation (Budget Measures) Act 2026. Clause 237 amends section 17 to amend new section MC 5(1)(b)(i) and (ii) of the Income Tax Act 2007 to correct the punctuation. Clause 238 amends section 20 to amend new section MD 7C(4)(c) of the Income Tax Act 2007 to correct a minor fault of expression. Clause 239 sets out the clause that amends the Gaming Duties Act 1971. Clause 240 amends section 12L to remove the requirement for the Commissioner to send a copy of a deduction notice to the defaulter and replace this with a requirement for the Commissioner to notify the defaulter of all the information in the deduction notice that relates to them. This will enable the Commissioner to issue consolidated deduction notices, which combine more than one person’s deduction notice information, to third parties, such as employers or banks. Clause 241 repeals the estate and gift duties legislation that is no longer in force. Clause 242 makes the consequential amendments to the enactments set out in Schedule 3 as a result of the repeal of the estate and gift duties legislation. APPROVED ISSUER LEVY Part 6 provides for the relocation of the approved issuer levy provisions from the Stamp and Cheque Duties Act 1971 ( SCDA ) into a new Approved Issuer Levy Act. The provisions have been reorganised and there has been some changes of style and language. Clause 243 inserts a purpose provision to reflect that the reorganisation and changes of style and language are not intended to affect the interpretation or effect of the provisions. Clause 244 is the relocated section 86F of the SCDA. This clause also amends the definition of registered security to exclude a transaction or class of transactions that has been deregistered by the Commissioner. This amendment will take effect on 1 October 2027 and apply to securities registered on or after that date. Clause 245 relates to the transitional, savings, and related provisions set out in Schedule 4 . Those provisions ensure that the amendments to the new Act that take effect on 1 October 2027 apply to securities registered on or after that date and that a transaction or class of transaction that is a registered security under the provisions of the Stamp and Cheque Duties Act 1971 continues to be a registered security under the new Act. Clause 246 provides that the new Act will bind the Crown. Clause 247 is the relocated section 86G of the SCDA. Clause 248 is the relocated section 86H of the SCDA. This clause also amends the provision to provide for the circumstances in which the Commissioner may reregister a transaction or class of transactions that has been deregistered. This amendment will take effect on 1 October 2027 and apply to securities registered on or after that date. Clause 249 inserts a new provision to allow the Commissioner to deregister a registered security when all amounts of approved issuer levy for the security have been outstanding for a 2-year period, the Commissioner notifies the person of the intention to deregister the security, and an amount is still outstanding at least 6 months after notification. This provision will take effect on 1 October 2027 and apply to securities registered on or after that date. Clause 250 is the relocated section 86J of the SCDA. Clause 251 is the relocated section 86K of the SCDA. Clause 252 is the relocated section 86KA of the SCDA. This clause also amends the section to make 2 changes. The first increases the threshold for a person to pay approved issuer levy in instalments, rather than monthly, from $500 to $10,000. The second change reduces the number of instalments a person has to pay if they meet the threshold from 2 instalments to 1 instalment, which is payable on the 20 April following the end of the tax year. Clause 253 is the relocated section 86IC of the SCDA. Clause 254 is the relocated section 86I of the SCDA. Clause 255 is the relocated section 86IB of the SCDA. Clause 256 is the relocated section 86L of the SCDA. Clause 257 is the relocated section 86GB of the SCDA. Clause 258 repeals the Stamp and Cheque Duties Act 1971 and the Stamp Duty Abolition Act 1999. Clause 259 makes the consequential amendments to the enactments set out in Schedule 5 as a result of the repeal of the stamp duties legislation. The Parliament of New Zealand enacts as follows: 1 Title This Act is the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . 2 Commencement This Act comes into force on the day after Royal assent, except as provided in this section. Sections 47 and 93(2) and (3) come into force on 1 April 2008. Section 229 comes into force on 1 January 2012. Section 129(9) comes into force on 29 March 2018. Section 157(1) comes into force on 4 June 2020. Sections 157(2) and 171(1) and (5) come into force on 30 March 2022. Sections 62, 147, and 157(3) come into force on 1 April 2023. Sections 143(3) and (6), 144, 150, 152, 154, 155, 156, 157(10), 170(2), 178, and 199 come into force on 5 October 2023. Sections 43(1) and (3) and 129(31) and (53) come into force on 1 April 2024. Sections 193, 194, and 201(1) and (2) come into force on 1 January 2025. Section 139 comes into force on 5 March 2025. Sections 61(2) and (3), 64(1), (2), and (4), and 129(2) come into force on 1 April 2025. Sections 28, 32(1), (2), and (4), 33, and 34 come into force on 22 May 2025. Sections 13, 17, 98(1), and 129(24) come into force on 22 October 2025. Sections 99 and 129(47) come into force on 26 December 2025. Sections 7, 9, 35, 49, 65, 66, 67, 68, 69(1), (6), (7), and (8), 70, 71, 72, 73, 74, 78, 79, 91, 92, 107, 108, 109, 110, 111, 112, 113, 129(14), (18), (19), (20), (39), (40), (41), and (52), 130, 131, 138(2), (3), and (5), 231, 233, and 234 come into force on 1 April 2026. Section 15 comes into force on 10 April 2026. Sections 237 and 238 come into force on 31 March 2027. Sections 5, 6, 8, 10, 11, 14, 18, 19, 20, 21, 22, 23, 24, 25, 29, 36, 37, 38, 39, 40, 41, 42, 43(2) and (4), 44, 45, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61(1) and (4), 64(3) and (5), 69(2), (3), (4), (5), and (9), 75, 80(1) and (3), 82, 83, 97, 105, 106, 114, 116(1) and (2), 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129(5), (6), (7), (8), (10), (11), (12), (13), (15), (16), (17), (23), (25), (26), (27), (30), (32), (34), (35), (36), (37), (38), (42), (43), (45), (48), (49), (50), (51), and (55), 133(2) and (4), 134, 135, 136, 137, 143(7) and (8), 146, 151, 157(7) and (9), 159, 160, 161, 162, 163, 172, 190, 192, 195, 196, 201(3), 203, 213, 243, 244, 245, 246, 247, 248(1), (3), (4), and (5), 250, 251, 252, 253, 254, 255, 256, 257, 258, and 259 come into force on 1 April 2027. Sections 186, 248(2), and 249 and paragraph (c) of the definition of registered security in section 244(1) come into force on 1 October 2027. Sections 12(2), 26, 84(3) and (4), 85, 86, 88, 89, 98(2) and (3), 100, 101(1), 102, 103, 115, 116(3), 129(33), (46), and (54), 133(1) and (3), 184, 185, 187, 188, and 226(1) come into force on 1 April 2028. Sections 80(2) and (4) and 81 come into force on 2 December 2028. 3 Annual rates of income tax for 2026–27 tax year Income tax imposed by section BB 1 (Imposition of income tax) of the Income Tax Act 2007 must, for the 2026–27 tax year, be paid at the basic rates specified in Schedule 1 of that Act. 4 Amendments to Income Tax Act 2007 This Part amends the Income Tax Act 2007. 5 Section CB 33 amended (Amounts derived by mutual associations) In section CB 33(2), delete , in the absence of this subsection, and replace a provision with another provision . Subsections (1) applies for the 2027–28 and later income years. 6 Section CD 39 amended (Calculation of amount of dividend when property made available) In section CD 39(4)(a), replace CX 38 with CX 37 . 7 Section CE 1BA (Reimbursement of employee expenditure for benefit) After section CE 1BA(1), insert: Expenditure on account of employee 1B For the purposes of subsection (1), a reimbursement includes expenditure on account of an employee. Replace section CE 1BA(3) with: Amount paid as employment income 3 If the employer chooses to treat the amount paid as employment income of the employee, as described in subsection (2)(a), section CW 17BA (Reimbursement of expenditure paid as employment income) applies to the payment and section CX 37 does not apply. After section CE 1BA(3), insert: Amount paid as unclassified benefit 3B If the employer chooses to treat the amount paid as an unclassified benefit, as described in subsection (2)(b), section CX 37 applies as if the payment was an unclassified benefit provided directly by the employer and section CW 17BA does not apply. 8 Section CH 1 amended (Adjustment for closing values of trading stock, livestock, and excepted financial arrangements) After section CH 1(1)(d), insert: e a cryptoasset supplier’s cryptoasset-lending right, if the original cryptoasset that relates to the right is an excepted financial arrangement described in paragraph (c). In section CH 1(4), replace or share-lending right with , share-lending right, or cryptoasset-lending right . In section CH 1, list of defined terms, insert cryptoasset-lending right , cryptoasset supplier , and original cryptoasset . Subsections (1), (2), and (3) apply to the disposal of an original cryptoasset under a cryptoasset-lending arrangement on or after 1 April 2027. 9 Section CQ 5 amended (When FIF income arises) In section CQ 5(1)(d) and (e), replace 50,000 with 100,000 in each place. After section CQ 5(5), insert: Transitional rule: total cost for 2025–26 and earlier income years 6 For the purposes of determining whether the person meets the requirement in subsection (1)(d)(iii) or (e)(iii), if the earlier year is the 2025–26 or an earlier income year, the reference in the subsection to a total cost of $100,000 or less is treated as if it were a reference to a total cost of $50,000 or less. Subsections (1) and (2) apply for the 2026–27 and later income years. 10 New section CW 8C inserted (Amounts derived from disposal of qualifying cryptocurrencies) After section CW 8B, insert: CW 8C Amounts derived from disposal of qualifying cryptocurrencies An amount derived by a person from disposing of a qualifying cryptocurrency is exempt income if the amount would otherwise be income only under section CB 4 (Personal property acquired for purpose of disposal). amount, exempt income, income, qualifying cryptocurrency Subsection (1) applies to the disposal of a qualifying cryptocurrency on or after 1 April 2027. 11 Section CW 16B amended (Accommodation expenditure: out-of-town secondments and projects) In section CW 16B(5), after (which relate to accommodation expenditure) , insert and Schedule 5, Part B (Motor vehicles provided as fringe benefits) . 12 Section CW 41 amended (Charities: non-business income) Repeal section CW 41(5)(b). Repeal section CW 41(5)(c). 13 Section CW 42 amended (Charities: business income) In section CW 42(5), replace and section CW 42B(2)(c) and (4) with , sections CW 42B(2)(c) and (4), CW 55BA(3), and CW 55BAA(4) . In section CW 42(7), replace and section CW 42B(2)(c) and (5) with , sections CW 42B(2)(c) and (5), CW 55BA(4), and CW 55BAA(5) . In section CW 42(8), replace and section CW 42B(2)(c) and (6) with , sections CW 42B(2)(c) and (6), CW 55BA(5), and CW 55BAA(6) . 14 New section CW 44B inserted (Not-for-profit organisations) After section CW 44, insert: CW 44B Not-for-profit organisations An amount derived by a not-for-profit organisation is exempt income if the amount would not be income under any other provision in this Part but for the organisation’s prohibition on distribution to members. amount, exempt income, income, not-for-profit organisation Subsection (1) applies for the 2027–28 and later income years. 15 Section CW 47 amended (TAB NZ and racing clubs) After section CW 47(1)(d), insert: db Greyhound Racing Transition Agency: 16 Section CW 55BA (Tertiary education institutions and subsidiaries) In section CW 55BA(5), replace CW 42(1)(c) and (8) with CW 42(8) . 17 Section CW 55BAA amended (Federation of Polytechnics Committee and industry skills boards) In the heading to section CW 55BAA, replace and industry skills boards with , industry skills boards, and industry skills board subsidiaries . Before section CW 55BAA(1), insert the heading: Exempt income: Federation of Polytechnics Committee Replace section CW 55BAA(2) with: Exempt income: industry skills board 2 An amount of income derived by an industry skills board established under section 362 of the Education and Training Act 2020 or an industry skills board subsidiary is exempt income if the board or the subsidiary is not carried on for the private pecuniary profit of any individual. Industry skills board subsidiary 3 In this section, industry skills board subsidiary means a company in which— a an industry skills board, alone or together with other industry skills boards, holds— i voting interests in the company adding up to 100%; or ii market value interests in the company adding up to 100%, when a market value circumstance exists; and b no person, other than an industry skills board, with some control over the company is able to direct or divert, to their own benefit or advantage, an amount derived from the company. Control over company 4 For the purposes of subsection (3)(b) , for an income year, a person is treated as having some control over the company and as being able to direct or divert amounts from the company if, in the corresponding tax year, they are a person described in section CW 42(5)(a) and (b). No control over company 5 For the purposes of subsection (3)(b) , a person described in section CW 42(7)(a) and (b) is not treated as having some control over the company merely because of the factors in section CW 42(7)(a) and (b). Benefit or advantage 6 For the purposes of subsection (3)(b) , a benefit or advantage is one that would be a benefit or advantage under section CW 42(8). In section CW 55BAA, list of defined terms, insert income year , industry skills board subsidiary , market value circumstance , market value interest , tax year , and voting interest . 18 Section CX 6 replaced (Private use of motor vehicle) Replace section CX 6 with: CX 6 Private use of motor vehicles When fringe benefit arises 1 A fringe benefit arises to the extent to which a person makes a motor vehicle available to an employee for their private use and the person— a owns the vehicle; or b leases or rents the vehicle; or c has a right to use the vehicle under an agreement or arrangement with the employee or a person associated with the employee. Relationship with section RD 29 2 Section RD 29 (Private use of motor vehicle: formulas) determines the extent of private use when a vehicle is made available to an employee. Exclusion: election by close company 3 Subsection (1) does not apply if the employee is a shareholder-employee of a close company and the close company made an election under section CX 17(4B) to apply subpart DE (Motor vehicle expenditure) instead of the FBT rules. close company, employee, FBT rules, fringe benefit, lease, motor vehicle, private use, shareholder-employee 19 Section CX 8 repealed (Private use of motor vehicle: use by more than 1 employee) Repeal section CX 8. 20 Section CX 17 amended (Benefits provided to employees who are shareholders or investors) Replace section CX 17(4B)(b) with: b the only benefits the close company provides to all employees in the income year are— i making available, as described in paragraph (a), no more than 2 motor vehicles: ii unclassified benefits; and 21 New section CX 19E inserted (Emergency vehicles) After section CX 19D, insert: CX 19E Emergency vehicles Not fringe benefit 1 A vehicle that an employer makes available to an employee for their private use is not a fringe benefit if the vehicle is an emergency vehicle. Meaning of emergency vehicle 2 Emergency vehicle means a vehicle that is mainly used to provide emergency services and is— a operated by any of the following: i an ambulance service, including air ambulance services: ii the New Zealand Police: iii Fire and Emergency New Zealand: iv the New Zealand Defence Force: v a local authority that is required by section 64 of the Civil Defence Emergency Management Act 2002 to provide civil defence emergency management: vi a volunteer organisation that has a service level agreement with the New Zealand Government for the provision of emergency services; and b either a branded vehicle or fitted with flashing lights, or both, unless the nature of the emergency services being carried out requires the vehicle not to display branding or flashing lights. Meaning of branded vehicle 3 For the purposes of this section, a branded vehicle, as defined in section CX 36B , includes a vehicle that is not a motor vehicle. branded vehicle, emergency vehicle, employee, employer, FBT rules, fringe benefit, local authority, motor vehicle 22 Section CX 34 repealed (Meaning of emergency call) Repeal section CX 34. 23 Section CX 36 replaced (Meaning of private use) Replace section CX 36 with: CX 36 Meaning of private use and incidental travel Private use of motor vehicle 1 Private use , for a motor vehicle,— a includes— i an employee’s use of the vehicle for travel between home and work; and ii any other travel that confers a private benefit on the employee; and b does not include the employee’s use of the vehicle for incidental travel. Incidental travel 2 Incidental travel means travel that is— a minor and secondary to travel between home and work; or b infrequent, of short duration, for a limited purpose, and not a substitution for remuneration. employee, incidental travel, motor vehicle, private use 24 New section CX 36B inserted (Meaning of branded vehicle) After section CX 36, insert: CX 36B Meaning of branded vehicle Meaning of branded vehicle 1 Branded vehicle means a motor vehicle that prominently and permanently displays on its exterior— a the form of identification that the employer regularly uses in carrying on their undertaking or activity; or b if the employer rents or leases the vehicle, the form or identification regularly used by the vehicle provider in carrying on their undertaking or activity. Short-term rent or lease excluded 2 An employer who rents, leases, or hires a vehicle for 3 months or less is not required to meet the requirements in subsection (1) and the vehicle is treated as if it were a branded vehicle for the purposes of this section and sections CX 19E and RD 28B (Requirement for motor vehicles to be branded) and Schedule 5, Part B (Motor vehicles provided as fringe benefits). Relationship to section CX 19E 3 Section CX 19E(3) overrides this section. branded vehicle, employer, motor vehicle 25 Section CX 38 repealed (Meaning of work-related vehicle) Repeal section CX 38. 26 New section CX 58C inserted (Amounts derived by tax-exempt entities) After section CX 58B, insert: CX 58C Amounts derived by tax-exempt entities To the extent to which section HC 38B (Beneficiary income of tax-exempt entities) applies to an amount of beneficiary income of a tax exempt entity, the amount is excluded income of the entity. amount, beneficiary income, excluded income, tax exempt entity Subsection (1) applies for the 2028–29 and later income years. 27 Section DB 40B amended (Expenditure in unsuccessful development of software) Replace section DB 40B(1), other than the heading, with: 1 This section applies when a person incurs expenditure in the development of software for use in the person’s business— a if the development is abandoned; and b if the development had been completed, the expenditure would have resulted in 1 or more of the following that would have been depreciable intangible property of the person: i owning copyright in the software: ii having a right to use software: iii having a right to use the copyright in the software. After section DB 40B(4), insert: Relationship with other sections 5 This section overrides sections DB 66 and DB 67. In section DB 40B, list of defined terms, insert business and depreciable intangible property . 28 Section DB 46 amended (Avoiding, remedying, or mitigating effects of discharge of contaminant or making of noise) In section DB 46(1)(c), after for the expenditure , insert other than section DI 5 (New investment asset deduction) . 29 Section DB 49 amended (Adjustment for opening values of trading stock, livestock, and excepted financial arrangements) After section DB 49(1)(d), insert: e a cryptoasset supplier’s cryptoasset-lending right, if the original cryptoasset that relates to the right is an excepted financial arrangement described in paragraph (c). In section DB 49(4), replace or share-lending right with , share-lending right, or cryptoasset-lending right . In section DB 49, list of defined terms, insert cryptoasset-lending right , cryptoasset supplier , and original cryptoasset . Subsections (1), (2), and (3) apply to the disposal of an original cryptoasset under a cryptoasset-lending arrangement on or after 1 April 2027. 30 Section DB 66 amended (Feasibility expenditure: spread deduction) After section DB 66(4), insert: Relationship with section DB 40B 5 This section is overridden by section DB 40B. 31 Section DB 67 amended (Feasibility expenditure: immediate deduction) After section DB 67(4), insert: Relationship with section DB 40B 5 This section is overridden by section DB 40B. 32 Section DI 4 amended (Meaning of new investment asset) After section DI 4(a)(vii), insert: viib an aircraft engine for which the person is allowed a deduction under section DW 5(3) or (5) (Aircraft operators: aircraft engines and aircraft engine overhauls): In section DI 4(a)(viii), replace (vii) with (viib) . Replace section DI 4(a)(viii) with: viii an alteration, extension, or repair of an asset of the type in any of subparagraphs (i) to (viib) , the cost of which is expenditure of a capital nature: After section DI 4(b)(iv), insert: v an aircraft engine overhaul for which the person is allowed a deduction under section DW 5(2)(a). 33 Section DI 4B amended (Treatment of certain items as assets) In section DI 4B(d), replace (vii) with (viib) . 34 Section DI 6 amended (Relationship to cost, calculations, etc, in other provisions) In section DI 6(1)(b), after (Mineral mining expenditure) , insert and sections DB 46 (Avoiding, remedying, or mitigating effects of discharge of contaminant or making of noise) and DW 5 (Aircraft operators: aircraft engines and aircraft engine overhauls) . 35 Section DN 6 amended (When FIF loss arises) In section DN 6(1)(d) and (e), replace 50,000 with 100,000 in each place. After section DN 6(4), insert: Transitional rule: total cost for 2025–26 and earlier income years 5 For the purposes of determining whether the person meets the requirement in subsection (1)(d)(iii) or (e)(iii), if the earlier year is the 2025–26 or an earlier income year, the reference in the subsection to a total cost of $100,000 or less is treated as if it were a reference to a total cost of $50,000 or less. Subsections (1) and (2) apply for the 2026–27 and later income years. 36 Section DO 5 amended (Expenditure on land: planting of listed horticultural plants) In the heading to section DO 5, delete planting of . In section DO 5(2), replace the planting with a listed horticultural plant . In section DO 5(6),— a in the heading, replace replaced with destroyed ; and b in the words before the paragraphs, delete in a planting of the person ; and c in paragraph (b), after assessable income , insert plus the amount of the expenditure incurred in removing the listed horticultural plant from the land ; and d in paragraph (c), after deriving , insert assessable . In section DO 5(7),— a in the heading, replace replaced with destroyed ; and b in the words before the paragraphs, replace a planting with a combined planting ; and c in paragraph (b), replace the planting with the combined planting . After section DO 5(7), insert: When subsection (7C) applies 7B Subsection (7C) applies when— a the person does not own the land and ceases to carry on the business on the land in an income year; and b a listed horticultural plant has been destroyed or made useless for the purpose of deriving the person’s assessable income; and c the uselessness is caused other than as a result of the action or failure to act of the person, an agent of the person, or an associated person of the person; and d the person is not allowed any other deduction for the listed horticultural plant under this subpart for the income year. Deduction: destroyed listed horticultural plants on cessation of business 7C Despite subsections (2) and (3)(b), for the income year in which the person ceases carrying on the business on the land, the person is allowed a deduction for the amount of— a the diminished value of the expenditure on the listed horticultural plant at the time the plant is destroyed or made useless for deriving the person’s assessable income; and b the expenditure incurred in removing the listed horticultural plant from the land. When subsections (7E) and (7F) apply 7D Subsections (7E) and (7F) apply when— a the person does not own the land and ceases to carry on the business on the land in an income year; and b a significant portion of the listed horticultural plants in a combined planting has been destroyed or made useless for the purpose of deriving the person’s assessable income and the person is allowed a deduction under subsection (7C) for the expenditure on that portion; and c the remaining listed horticultural plants in the combined planting are no longer economically viable for the purpose of deriving assessable income; and d the owner of the land has documented, in writing, that neither they nor any person who carries on a business on the land while the owner owns the land will, at any time, use the remaining listed horticultural plants for the purpose of deriving assessable income. Deduction: remaining listed horticultural plants uneconomic 7E Despite subsections (2) and (3)(b), for the income year in which the person ceases carrying on the business on the land, the person is allowed a deduction for the amount of— a the diminished value of the expenditure on the remaining listed horticultural plants; and b the expenditure incurred in removing those remaining listed horticultural plants. No deduction for other person 7F If the person is allowed a deduction for expenditure under subsection (7E) , no other person is allowed a deduction for that expenditure on those remaining listed horticultural plants. In section DO 5, list of defined terms, insert combined planting and delete planting . 37 Section DO 6 replaced (Expenditure on land: horticultural replacement planting) Replace section DO 6 with: DO 6 Expenditure on land: replacement planting of listed horticultural plants When this section applies 1 This section applies, for a person and an income year (the current income year ), when the person carries on a horticultural business on land in New Zealand and, in the current income year,— a the person— i plants, or causes to be planted, on the land a listed horticultural plant as a replacement plant: ii regrafts, or causes to be regrafted, a listed horticultural plant on the land as a replacement plant; and b the replacement plant benefits the business; and c the person does not dispose of the land on which the replacement plant is cultivated; and d the person chooses to apply this section by making a return of income for the current income year on that basis. Deduction 2 The person is allowed a deduction for expenditure incurred in replacing the listed horticultural plant with the replacement plant. Amount of deduction 3 The amount of the deduction under subsection (2) is,— a if the person has been denied a deduction under this section for either or both of the 2 income years preceding the current income year, the amount calculated using the first formula in subsection (4) ; and b if the person has been allowed a deduction under this section for the combined planting that contains the replacement plant for both of the 2 income years preceding the current income year, the lesser of the amount calculated using the first formula in subsection (4) and the amount calculated using the second formula in subsection (5) . First formula 4 For the purposes of subsection (3) , the first formula is— replacement expenditure × 7.5% ÷ fraction. Second formula 5 For the purposes of subsection (3) , the second formula is— replacement expenditure × (15% − earlier fraction − later fraction) ÷ replaced area fraction. Items in formulas 6 In the formulas in subsections (4) and (5) ,— a replacement expenditure is the amount of the expenditure incurred by the person in replacing the listed horticultural plant: b fraction is the greater of 7.5% and the replaced area fraction for the current income year: c earlier fraction is the lesser of 7.5% and the replaced area fraction for the earlier of the 2 income years preceding the current income year: d later fraction is the lesser of 7.5% and the replaced area fraction for the later of the 2 income years preceding the current income year: e replaced area fraction is the amount, expressed as a percentage, that is the area, at the end of the income year, of that part of the land occupied by the combined planting on which listed horticultural plants are planted or regrafted during the income year as replacement plants divided by the total area of the land occupied by the combined planting. Timing of deduction 7 The deduction is allocated to the current income year. Link with subpart DA 8 This section overrides the general permission and the capital limitation. The other general limitations still apply. assessable income, business, capital limitation, combined planting, deduction, diminished value, general limitation, general permission, income year, listed horticultural plant, replacement plant, return of income 38 Section DO 7 amended (Accounting for expenditure on listed horticultural plants under sections DO 5 and DO 6) In section DO 7(2), replace 1 planting with a combined planting . In section DO 7, list of defined terms, insert combined planting and delete planting . 39 Section DO 8 replaced (Meaning of planting and plot) Replace section DO 8 with: DO 8 Meaning of combined planting In sections DO 5 to DO 7,— combined planting , for a person and an income year, means 1 or more listed horticultural plants— a that are involved in the business of the person during the income year; and b for which the person accounts as 1 group of listed horticultural plants under sections DO 5 and DO 6 , for the income year, separately from any other listed horticultural plants that are involved in the business of the person. business, combined planting, income year, listed horticultural plant 40 Section DO 9 repealed (Meaning of replaced area fraction) Repeal section DO 9. 41 Section DO 10 amended (Farming or horticulture expenditure of lessor or sublessor) In section DO 10(1),— a in paragraph (b), replace a person with another person ; and b in paragraph (c)(i),— i replace they are with they would be ; and ii after DO 6 , insert if they were carrying on the business on the land ; and c in paragraph (c)(ii),— i replace is allowed with would be allowed ; and ii after the land , insert if they were carrying on the business on the land . In section DO 10(2), replace they incur the expenditure or are allowed the deduction with they or the other person incurs the expenditure . 42 Section DO 11 amended (Improvement destroyed or made useless) In section DO 11(1),— a in paragraph (a), replace schedule 20 with Schedule 20, Part A ; and b in paragraph (c), delete or DO 5 . After section DO 11(1), insert: Income year business ceases 1B For the purposes of subsection (1), if the person does not own the land but operates a business on the land, the requirement in paragraph (c) is treated as met if it would be met but for the income year being the year in which the person ceases to carry on the business on the land. 43 Section DV 8 replaced (Non-profit organisations) Replace section DV 8 with: DV 8 Not-for-profit organisations Deduction 1 A not-for-profit organisation is allowed a deduction for the lesser of— a $1,000; and b the amount that would be the organisation’s net income in the absence of this section. Link with subpart DA 2 This section supplements the general permission. The general limitations still apply. amount, deduction, general limitation, general permission, net income, not-for-profit organisation Replace section DV 8 with: DV 8 Not-for-profit organisations When this section applies 1 This section applies when a not-for-profit organisation has net income of $10,000 or less for an income year. Amount of deduction 2 The organisation is allowed a deduction for the lesser of— a $10,000; and b the amount that would be the organisation’s net income in the absence of this section. Link with subpart DA 3 This section supplements the general permission. The general limitations still apply. amount, deduction, general limitation, general permission, net income, not-for-profit organisation Subsection (1) applies for the 2024–25 and later income years. Subsection (2) applies for the 2027–28 and later income years. 44 Section EA 1 amended (Trading stock, livestock, and excepted financial arrangements) After section EA 1(1)(d), insert: e a cryptoasset supplier’s cryptoasset-lending right, if the original cryptoasset that relates to the right is an excepted financial arrangement described in paragraph (c). In section EA 1, list of defined terms, insert cryptoasset-lending right , cryptoasset supplier , and original cryptoasset . Subsections (1) and (2) apply to the disposal of an original cryptoasset under a cryptoasset-lending arrangement on or after 1 April 2027. 45 Section ED 1 amended (Valuation of excepted financial arrangements) Replace the heading to section ED 1(4) with: Amount: share-lending arrangement After section ED 1(4B), insert: Valuation method for cryptoasset-lending arrangement 4C Despite subsection (1), the following property has the value at the end of each income year that is equal to the amount described in subsection (4D) : a a cryptoasset supplier’s cryptoasset-lending right: b the original cryptoasset or an identical cryptoasset acquired by a cryptoasset supplier under a cryptoasset-lending arrangement. Amount: cryptoasset-lending arrangement 4D For the purposes of subsection (4C) , the amount is the cost of the original cryptoasset, determined under this section immediately before the cryptoasset supplier’s disposal of the cryptoasset under the relevant cryptoasset-lending arrangement. In section ED 1, list of defined terms, insert cryptoasset , cryptoasset-lending right , cryptoasset supplier , and original cryptoasset . Subsections (1), (2), and (3) apply to the disposal of an original cryptoasset under a cryptoasset-lending arrangement on or after 1 April 2027. 46 Section EE 38 amended (Items of low value) In section EE 38(1)(f), insert if before the item is one of a group of items, . 47 Section EE 50 amended (Amount of depreciation loss when item partly used to produce income) In section EE 50(1)(b), delete at a time . In section EE 50(1)(c), replace at the same time with during the income year . Replace section EE 50(3)(b) with: b qualifying use days is the number of days in the income year on which the person owns the item and the item is— i physically used in a manner described in subsection (1)(b)(i) or (ii); or ii not physically used for any purpose on that day and is available for a use described in subsection (1)(b)(i) or (ii): 48 Section EE 67 amended (Other definitions) In section EE 67, replace the definition of improvement with: improvement means an alteration, extension, or repair of an item of depreciable property, the cost of which is expenditure of a capital nature 49 New subpart EV inserted (Treaty of Waitangi settlement redress assets) After section EM 8, insert: EV Treaty of Waitangi settlement redress assets EV 1 Treaty of Waitangi settlement redress assets: valuation When this section applies 1 This section applies when, as a transfer or other provision of the redress asset from the Crown, a redress asset is transferred to, or otherwise comes to be held by, a recipient entity. Market value at time of transfer 2 For the purposes of this Act, the redress asset has a cost equal to the market value of the redress asset at the time it is transferred to, or otherwise comes to be held by, the recipient entity. Definitions 3 In this section,— recipient entity , for a redress asset, means an entity that is appointed or nominated to be transferred, or otherwise come to hold, the redress asset under settlement legislation or a deed of settlement in relation to a claim under the Treaty of Waitangi redress asset means property, other than money, that is provided by the Crown as redress in relation to a claim under the Treaty of Waitangi. market value, recipient entity, redress asset Subsection (1) applies for the 2026–27 and later income years. 50 Section EW 5 amended (What is an excepted financial arrangement?) In section EW 5(1)(a), replace 20 with 20B . After section EW 5(12), insert: Cryptoasset-lending arrangement 12B A cryptoasset-lending arrangement is an excepted financial arrangement. Repeal section EW 5(18)(b). After section EW 5(20), insert: Foreign currency transaction account: private or domestic purpose 20B A foreign currency transaction account is an excepted financial arrangement if— a the account is denominated in a foreign currency; and b the account is located outside New Zealand; and c the predominant purpose of the account is to facilitate expenditure for a private or domestic purpose. Replace section EW 5(25), other than the heading, with: 25 A variable principal debt instrument is an excepted financial arrangement if the total value, determined for a variable principal debt instrument denominated in a foreign currency using the method described in section EW 57(2)(d), of all variable principal debt instruments to which a person is a party does not exceed $100,000 at any time in the income year, except when the person who is a party to the financial arrangement— a makes an election under section EW 8; or b is a company. In section EW 5, list of defined terms, insert “cryptoasset-lending arrangement”. Subsections (1), (3), (4), and (5) apply for the 2027–28 and later income years. Subsections (2) and (6) apply to the disposal of an original cryptoasset under a cryptoasset-lending arrangement on or after 1 April 2027. 51 Section EW 7 amended (Change from private or domestic purpose) In section EW 7(1), replace 20 with 20B . Subsection (1) applies for the 2027–28 and later income years. 52 Section EW 13 amended (When use of spreading method not required) After section EW 13(3), insert: Quarantined foreign financial arrangements 4 A person is not required to use any of the spreading methods for a quarantined foreign financial arrangement. Meaning of quarantined foreign financial arrangement 5 Quarantined foreign financial arrangement means a financial arrangement for which, for a person who is a party to the arrangement, all the following apply: a the person is a natural person who is resident in New Zealand; and b the income from the arrangement does not have a New Zealand source under section YD 4 (Classes of income treated as having New Zealand source); and c the income from the arrangement is liable to tax in a foreign jurisdiction because of the person’s citizenship or right to work in that jurisdiction; and d the foreign jurisdiction has a double tax agreement with New Zealand; and e the person does not claim, in the foreign jurisdiction, a credit for New Zealand tax arising from the application of a spreading method under this subpart. In section EW 13, list of defined terms, insert double tax agreement and quarantined foreign financial arrangement . Subsections (1) and (2) apply for the 2027–28 and later income years. 53 New section EW 13B inserted (Adjustment for quarantined foreign financial arrangements) After section EW 13, insert: EW 13B Adjustment for quarantined foreign financial arrangements Adjustment required 1 A person must calculate an adjustment under subsection (2) for a financial arrangement when— a the financial arrangement becomes a quarantined foreign financial arrangement; or b the financial arrangement ceases to be a quarantined foreign financial arrangement. Formula 2 A person calculates an adjustment using the formula— adjusted income − adjusted expenditure − previous income + previous expenditure. Items in formula 3 The items in the formula are set out in subsections (4) to (7) . Adjusted income 4 Adjusted income is,— a if subsection (1)(a) applies, the amount that would have been income derived by the person under the financial arrangement if section EW 13(4) had applied throughout the period beginning on the date on which the person became a party to the arrangement and ending on the day before the arrangement became a quarantined foreign financial arrangement; or b if subsection (1)(b) applies, the amount that would have been income derived by the person under the financial arrangement if the person had been required to use a spreading method throughout the period beginning on the date on which the person became a party to the arrangement and ending on the day before the arrangement ceased to be a quarantined foreign financial arrangement. Adjusted expenditure 5 Adjusted expenditure is,— a if subsection (1)(a) applies, the amount that would have been expenditure incurred by the person under the financial arrangement if section EW 13(4) had applied throughout the period beginning on the date on which the person became a party to the arrangement and ending on the day before the arrangement became a quarantined foreign financial arrangement; and b if subsection (1)(b) applies, the amount that would have been expenditure incurred by the person under the financial arrangement if the person had been required to use a spreading method throughout the period beginning on the date on which the person became a party to the arrangement and ending on the day before the arrangement ceased to be a quarantined foreign financial arrangement. Previous income 6 Previous income is income derived by the person under the financial arrangement before the event referred to in subsection (1)(a) or (b) , as applicable. Previous expenditure 7 Previous expenditure is expenditure incurred by the person under the financial arrangement before the event referred to in subsection (1)(a) or (b) , as applicable. Adjustment is income or expenditure 8 The adjustment is,— a if positive, income under section CC 3(1) (Financial arrangements) derived by the person in the income year for which the calculation is made: b if negative, expenditure incurred by the person in the income year for which the calculation is made. amount, financial arrangement, income, income year, quarantined foreign financial arrangement, spreading method Subsection (1) applies for the 2027–28 and later income years. 54 Section EW 17 amended (Straight-line method) In section EW 17(1)(a), replace 1,850,000 with 3,000,000 . Subsection (1) applies for the 2027–28 and later income years. 55 New section EW 22B inserted (Election to calculate financial arrangement amounts in foreign currency) After section EW 22, insert: EW 22B Election to calculate financial arrangement amounts in foreign currency Who this section applies to 1 This section applies to a person who chooses to apply this section and who is— a a natural person; or b a natural person calculating their attributed CFC income or loss for a controlled foreign company if— i the natural person is the only shareholder of the controlled foreign company; or ii all of the shareholders of the controlled foreign company have natural love and affection for one another; or c a trustee or beneficiary of a trust that— i has no gifting settlor who is not a natural person or deceased person; and ii would be a complying trust under section HC 10 (Complying trusts) if a distribution were made at any time during the income year; and iii was established mainly for the benefit of— A 1 or more natural persons for whom the settlors have natural love and affection (or had natural love and affection when alive); or B an organisation or trust whose income is exempt under section CW 41 (Charities: non-business income) or CW 42 (Charities: business income). Who this section does not apply to 2 This section does not apply to a person who— a carries on a business of trading in foreign currency: b enters into or retains financial arrangements principally for the purpose of deriving gains from changes in exchange rates, disregarding any financial arrangements entered into or retained to hedge exposure to changes in exchange rates arising under other financial arrangements to which the person is a party. Excluded financial arrangements 3 This section does not apply to a financial arrangement that is a derivative instrument, including— a a forward contract: b a swap: c an option: d a contract for difference. Effect of election 4 If the person chooses to apply this section, the person must— a for all financial arrangements to which the person is a party, other than a financial arrangement referred to in subsection (3) , that are denominated in a currency other than New Zealand dollars, calculate, as applicable,— i income or expenditure under a spreading method allowed under this subpart: ii a base price adjustment under section EW 31: iii a cash basis adjustment under section EW 63: iv an adjustment under section EW 13B ; and b calculate the amounts referred to in paragraph (a) in either— i the currency in which the arrangement is denominated; or ii a single foreign currency elected by the person. Effect at end of income year 5 The person must convert the amounts referred to in subsection (4)(a) into New Zealand dollars at the end of the income year using a method permitted by section YF 1 (General rules for currency conversion). Effect of election 6 A person who makes an election under this section is bound by the election for subsequent income years unless— a the person withdraws the election; or b the person becomes an ineligible person under subsection (2) . Limits on election 7 A person may not make an election under this section for 5 income years after— a withdrawing an election under subsection (6)(a) ; or b becoming a person to whom subsection (2) applies. Change in elected currency 8 A person may change the method used under subsection (4)(b) , or the foreign currency elected under subsection (4)(b)(ii) , for all financial arrangements to which subsection (4) applies only if— a the person has a sound commercial reason for the change; and b the person notifies the Commissioner of the change before the due date for filing the return of income for the income year in which the notification is made. Effective date of change 9 A change under subsection (8) applies from the day after the date on which the person notifies the Commissioner. Spreading method 10 A person must calculate an adjustment under subsection (11) for each financial arrangement when— a the person first applies this section to an existing financial arrangement: b the person changes the currency used for the financial arrangement under subsection (8) : c the person withdraws their election under this section and calculates the income and expenditure for the financial arrangement in New Zealand dollars: d the person, having applied this section, ceases to be eligible to apply this section because subsection (2) applies to them. Formula 11 The formula is— income (elected currency) − expenditure (elected currency) − income (previous currency) + expenditure (previous currency). Items in formula 12 The items in the formula are set out in subsections (13) to (16) . Income (elected currency) 13 Income (elected currency) is the amount that would have been income derived by the person under the financial arrangement if the currency used to calculate income or expenditure for the financial arrangement after subsection (7) first applies had been used for the arrangement for the period starting on the date on which the person became a party to the arrangement and ending on the last day of the income year for which the calculation is made. Expenditure (elected currency) 14 Expenditure (elected currency) is the amount that would have been expenditure incurred by the person under the financial arrangement if the currency used to calculate income or expenditure for the financial arrangement after subsection (7) first applies had been used for the arrangement for the period starting on the date on which the person became a party to the arrangement and ending on the last day of the income year for which the calculation is made. Income (previous currency) 15 Income (previous currency) is income, under section CC 3 (Financial arrangements), derived by the person under the financial arrangement— a in income years before the income year in which subsection (10) first applies to the arrangement; and b in the income year in which subsection (10) first applies to the arrangement, for the period before subsection (10) first applies to the arrangement. Expenditure (previous currency) 16 Expenditure (previous currency) is expenditure incurred by the person under the financial arrangement— a in income years before the income year in which subsection (10) first applies to the arrangement; and b in the income year in which subsection (10) first applies to the arrangement, for the period before subsection (10) first applies to the arrangement. Adjustment is income or expenditure for base price adjustment purposes 17 The adjustment is,— a if positive, income derived by the person under the financial arrangement for the purposes of section EW 31(9): b if negative, expenditure incurred by the person under the financial arrangement for the purposes of section EW 31(10). amount, Commissioner, complying trust, controlled foreign company, financial arrangement, income, income year, return of income, spreading method, trustee Subsection (1) applies for the 2027–28 and later income years. 56 Section EW 25 amended (Consistency of use of straight-line method and market valuation method) In the heading to section EW 25(3), replace 1,850,000 with 3,000,000 . In section EW 25(3), replace 1,850,000 with 3,000,000 . Subsections (1) and (2) apply for the 2027–28 and later income years. 57 Section EW 31 amended (Base price adjustment formula) After section EW 31(9)(c), insert: d an amount treated as income under section EW 22B(17)(a) . Replace EW 31(10), other than the heading, with: 10 Expenditure is— a expenditure incurred by the person under the financial arrangement in earlier income years; and b an amount treated as expenditure under section EW 22B(17)(b) . Subsections (1) and (2) apply for the 2027–28 and later income years. 58 Section EW 36 amended (Consideration when person exits from rules: accrued entitlement) In section EW 36(1)(b)(iii), replace 20 with 20B . Subsection (1) applies for the 2027–28 and later income years. 59 Section EW 37 amended (Consideration when person enters rules: accrued obligation) In section EW 37(1)(e), replace 20 with 20B . Subsection (1) applies for the 2027–28 and later income years. 60 Section EW 40 amended (Consideration when person exits from rules: accrued obligation) In section EW 40(1)(b)(iii), replace 20 with 20B . Subsection (1) applies for the 2027–28 and later income years. 61 Section EW 41 amended (Consideration when person enters rules: accrued entitlement) In section EW 41(1)(e), replace 20 with 20B . After section EW 41(2), insert: Who this section does not apply to 3 Despite subsection (1), this section does not apply to a person in respect of a financial arrangement that the person acquired for the purpose of satisfying the investment requirements of an Active Investor Plus Visa. Meaning of Active Investor Plus Visa 4 For the purposes of this section, Active Investor Plus Visa means a resident visa granted under the Active Investor Plus Visa category in immigration instructions certified under section 22 of the Immigration Act 2009. In section EW 41, list of defined terms, insert Active Investor Plus Visa . Subsection (1) applies for the 2027–28 and later income years. 62 Section EW 46D amended (Consideration when insolvent company’s debt repaid with consideration received for issuing shares) Repeal section EW 46D(1)(a). In section EW 46D(1), replace paragraph (b) with: b a company or an associated person of the company enters into an arrangement with another person ( person B ) under which the company or associated person issues shares to person B for consideration; and bb person B is— i a creditor of the company or an associated person of a creditor of the company; or ii another person if there is an arrangement between the creditor or associated person of the creditor and that other person for some or all of the consideration to be paid to them by the creditor or associated person; and Repeal section EW 46D(1)(c). In section EW 46D(1)(cb) and (d), replace debtor with company . In section EW 46D(1)(e) and (g), and (2), replace debtor or person A with company or associated person . In section EW 46D(1)(e), (f), and (g), (2)(a) and (b), and (4)(b), replace debtor’s with company’s . 63 Section EW 60 repealed (Trustee of deceased’s estate) Repeal section EW 60. 64 Section EX 21 amended (Attributable CFC amount and net attributable CFC income or loss: calculation rules) In section EX 21(7)(a), replace 1,000,000 with 2,000,000 . In section EX 21(7)(b), replace 100,000 with 200,000 . After section EX 21(8), insert: Limit to subsection (7) for certain wholly-owned CFCs 8B Subsection (7) does not apply to a controlled foreign company for a financial arrangement if— a the company has a single shareholder that is a natural person; and b the shareholder chooses to apply section EW 22B (Election to calculate financial arrangement amounts in foreign currency). Subsections (1) and (2) apply for the 2025–26 and later income years. Subsection (3) applies for the 2027–28 and later income years. 65 Section EX 37 amended (Grey list company owning New Zealand venture capital company: 10-year exemption) Before section EX 37(1), insert the heading: 10-year exemption In section EX 37, insert as subsections (2) and (3): When subsection (3) applies 2 Subsection (3) applies— a if the grey list company holds the shares in the resident company as the result of the reorganisation of the ownership of another grey list company (the original grey list company ); and b before the reorganisation, the person held shares in the original grey list company; and c the requirements of subsection (1)(d) were met for the person’s shares in the original grey list company. Treatment based on original grey list company 3 For the purposes of subsection (1),— a paragraph (d) is treated as having been met for the person; and b in the year of the reorganisation, paragraph (e) applies as if the grey list company held the interests of the original grey list company in the resident company before the reorganisation; and c paragraph (f) applies as if the grey list company referred to in that paragraph is the original grey list company. Subsections (1) and (2) apply for the 2026–27 and later income years. 66 Section EX 44 amended (Six calculation methods) In section EX 44(2), delete EX 46B, . Subsection (1) applies for the 2026–27 and later income years. 67 Section EX 46 amended (Limits on choice of calculation methods) In section EX 46(1)(b), delete EX 46B, . After section EX 46(3), insert: When subsection (3C) applies 3B Subsection (3C) applies for a person and an accounting period if,— a for the preceding accounting period, either— i the person met the requirements of subsection (3) and chose to use the attributable FIF income method to calculate FIF income or loss from an attributing interest in the FIF; or ii the person’s income interest in the company under subsection (3)(a)(ii), determined as if the company were a FIF in all cases, was 10% or more but the interest was not an attributing interest in a FIF for the person; and b the person’s income interest under subsection (3)(a)(ii) for the accounting period is less than 10%; and c at all times in the accounting period, the person is— i a director or employee of the FIF or of a company in the same group of companies as the FIF; or ii the trustee of a trust of which a settlor or beneficiary is a person who meets the requirement of subparagraph (i) ; and d the person chooses to use the attributable FIF income method to calculate FIF income or loss from the attributing interest. Income interest treated as 10% or more 3C For the purposes of subsection (3)(a)(ii), the person’s income interest is treated as if it were 10% or more for the accounting period. In section EX 46(9)(a), after is allowed , insert or would have been allowed if the person did not choose to use the comparative value method for another attributing interest and as a result subsection (8)(b) did not apply . Replace section EX 46(9B), other than the heading, with: 9B A person may use the revenue account method to calculate FIF income or loss from an attributing interest in a FIF only if— a the person is— i a natural person; or ii the trustee of a trust that meets the requirements of subsection (6)(b)(i) to (iv); and b either— i the interest is a RAM interest; or ii the person is an extended RAM taxpayer and the interest is an extended RAM interest; and c the person uses the revenue account method to calculate FIF income or loss for all their RAM interests or extended RAM interests, as applicable, other than their excluded RAM interests. Revenue account method for certain transferred extended RAM interests 9C Despite subsection (9B) , a person may also use the revenue account method to calculate FIF income or loss from an attributing interest in a FIF if— a the person is a natural person; and b the person acquires the interest from an extended RAM taxpayer in circumstances to which subpart FB (Transfers of relationship property) or section FC 3 (Property transferred to spouse, civil union partner, or de facto partner) apply; and c the interest was an extended RAM interest for the extended RAM taxpayer; and d the extended RAM taxpayer chose to use the revenue account method to calculate FIF income or loss for the interest; and e the person chooses to use the revenue account method for the income year in which the person acquires the interest. Revenue account method for previously eligible RAM interests 9D Despite subsection (9B) , if a person holds an attributing interest in a FIF that is a RAM interest for which they use the revenue account method to calculate the FIF income or loss of the interest and that interest ceases to be a RAM interest, the person may continue to use the revenue account method to calculate the FIF income or loss of that interest. After section EX 46(12), insert: Meaning of RAM interest 13 RAM interest , for a person, means an attributing interest in a FIF if— a the interest is a share in a foreign company; and b the share is not listed on a recognised exchange; and c no effective redemption facility for market value is available to the person for the share; and d less than 80% of the foreign company’s value is from shares that would not satisfy paragraph (b) or (c) . Meaning of extended RAM interest 14 Extended RAM interest , for a person who is an extended RAM taxpayer, means an attributing interest in a FIF— a that is a share in a foreign company; and b any disposal of which is liable to tax under the laws of the country or territory outside New Zealand in which the person is liable to tax on the basis of citizenship or a right to work or live in that country or territory, being a country or territory with which New Zealand has a double tax agreement. Meaning of extended RAM taxpayer 15 Extended RAM taxpayer means— a a natural person who is liable to tax in a country or territory outside New Zealand on the basis of citizenship or a right to work or live in that country or territory, being a country or territory with which New Zealand has a double tax agreement; or b the trustee of a trust that— i meets the requirements in subsection (6)(b)(i) to (iv); and ii has a principal settlor that satisfies the criteria set out in paragraph (a) of this definition. Meaning of excluded RAM interest 16 Excluded RAM interest , for a person, means a RAM interest or extended RAM interest for which the person— a chooses to use the attributable FIF income method under section EX 46(3); or b is required to use the comparative value method or deemed rate of return method, as applicable, under section EX 47 or EX 47B. In section EX 46, list of defined terms, insert director , double tax agreement , employee , excluded RAM interest , extended RAM interest , extended RAM taxpayer , group of companies , natural person , New Zealand , principal settlor , and RAM interest . Subsections (1), (2), (3), (4), (5), and (6) apply for the 2026–27 and later income years. 68 Section EX 46B repealed (Limits on choice of revenue account method) Repeal section EX 46B. Subsection (1) applies for the 2026–27 and later income years. 69 Section EX 56B amended (Revenue account method) In section EX 56B(11)(d), after non-resident , insert or treated as a non-resident under a double tax agreement or is a transitional resident . In section EX 56B(12), after New Zealand resident , insert or begins being treated under a double tax agreement as not being resident in New Zealand and replace change in residence with cessation of residence or change in treatment . After section EX 56B(12), insert: Subsequent cessation of residency ignored 12B If the person is first treated as having disposed of the interest under subsection (12) because they begin being treated under a double tax agreement as not being resident in New Zealand and the person subsequently ceases to be New Zealand resident, the person’s cessation of residency is ignored for the purposes of subsection (12). In section EX 56B(14),— a replace paragraph (a) with: a either— i the date the person becomes New Zealand resident again and is not treated under a double tax agreement as not being resident in New Zealand; or ii if the person remained a New Zealand resident but was treated under a double tax agreement as not being resident in New Zealand, the date the person ceases to be so treated; and b in paragraph (b), replace ceased to be New Zealand resident with is treated as having disposed of the interest under subsection (12) . In section EX 56B(16),— a replace paragraph (a) with: a either— i the date the person becomes New Zealand resident again and is not treated under a double tax agreement as not being resident in New Zealand; or ii if the person remained a New Zealand resident but was treated under a double tax agreement as not being resident in New Zealand, the date the person ceases to be so treated; and b in paragraph (b), replace ceased to be New Zealand resident with would, in the absence of this subsection, be treated as having disposed of the interest under subsection (12) . In section EX 56B(18)(a), replace section EX 46B(10)(a)(iii) with section EX 46(15)(a) . In section EX 56B, list of defined terms, insert extended RAM taxpayer and resident in New Zealand . Subsections (1), (6), and (7) apply for the 2026–27 and later income years. Subsections (2), (3), (4), and (5) apply for a person who begins being treated under a double tax agreement as not being resident in New Zealand on or after 1 April 2027. 70 Section EX 58 amended (Additional FIF income or loss if CFC owns FIF) In section EX 58(3)(b), replace and (5) with to (7) . In section EX 58(4),— a in paragraph (a), after loss , insert as if the person were the CFC ; and b in paragraph (b),— i delete otherwise ; and ii after FIF, , insert using the calculation method chosen under paragraph (a), . After section EX 58(4), insert: Alternative choice of method 4B Despite subsection (4)(a) and subject to subsection (4C) ,— a the person may choose, under sections EX 44 to EX 48, a calculation method for calculating the CFC’s FIF income or loss for the income year that would be available to the person if the person’s indirect attributing interest in the FIF were an attributing interest in the FIF and they were choosing the calculation method to calculate their FIF income or loss from that attributing interest; and b any method chosen under paragraph (a) is treated as the calculation method chosen under subsection (4)(a) for the purposes of subsection (4)(b). Limitation on alternative choice of method 4C If a person makes an election under subsection (4B) for an interest to which this section applies, the person must also make an election under subsection (4B) for all other interests the person has to which this section applies. Subsections (1), (2), and (3) apply for the 2026–27 and later income years. 71 Section EX 62 amended (Limits on changes of method) In section EX 62(2)(h), replace section EX 46B(2) with section EX 46(9B) . In section EX 62(8B), replace and all future income years. An election to change to any method other than the attributable FIF income method under this subsection is irrevocable with only if the person has used the revenue account method for at least the 5 immediately preceding income years . Replace section EX 62(8C), other than the heading, with: 8C A person may choose to change from another calculation method to the revenue account method for an attributing interest in a FIF only if— a either the person— i has not previously used the revenue account method for the interest; or ii has not used the revenue account method for at least the 5 immediately preceding income years; and b at the time of the election, the requirements of section EX 46(9B) are met. Subsections (1), (2), and (3) apply for the 2026–27 and later income years. 72 Section EX 63 amended (Consequences of changes in method) In section EX 63(8)(a), replace section EX 46B(6)(a)(iii), (iv), and (v) with section EX 46(13)(b), (c), and (d) . Subsection (1) applies for the 2026–27 and later income years. 73 Section EX 65 amended (Changes in application of FIF exemptions) In section EX 65(1)(b)(ii) and (5)(b)(ii), replace 50,000 with 100,000 . Subsection (1) applies for the 2026–27 and later income years. 74 Section EX 68 amended (Measurement of cost) In section EX 68(1)(a), (10), and (12), replace 50,000 with 100,000 . Subsection (1) applies for the 2026–27 and later income years. 75 Section EZ 16 amended (Amount of depreciation loss for plant or machinery additional to section EZ 15 amount) After section EZ 16(5), insert: Some definitions 6 In this section and section EZ 28,— car — a means a motor vehicle designed exclusively or mainly to carry up to 9 people, including the driver; and b includes such a motor vehicle that has rear doors and collapsible rear seats; and c does not include a moped or a motorcycle motor vehicle has the same meaning as in section 2(1) of the Land Transport Act 1998 but does not include a vehicle with a gross laden weight of more than 3,500 kilograms. In section EZ 16, list of defined terms, insert motor vehicle . 76 Section FC 8 amended (Transfer of certain financial arrangements) Replace section FC 8(2), other than the heading, with: 2 If the trustee of the deceased person’s estate is a cash basis person, the property must be valued at cost. 77 Section FE 2 amended (When this subpart applies) In section FE 2(1)(b), replace 1 in which with one in which . 78 Section FE 7C amended (Exemption for eligible infrastructure) Repeal section FE 7C(7). In section FE 7C(10)(b), replace subject to paragraph (c) with subject to paragraphs (c) and (d) . In section FE 7C, list of defined terms, delete foreign-sourced amount and insert New Zealand , partner , partnership , and resident in New Zealand . Subsections (1), (2), and (3) apply for the 2026–27 and later income years. 79 New section FE 7D inserted (Meaning of eligible infrastructure entity) After section FE 7C, insert: FE 7D Meaning of eligible infrastructure entity Eligible infrastructure entity 1 In sections FE 2 and FE 7C, eligible infrastructure entity means a person who— a has a right to impose levies under an Order in Council under the Infrastructure Funding and Financing Act 2020; or b meets the requirements of subsections (2), (3), and (4) . Business for qualifying infrastructure assets 2 The person carries on a business or project consisting of— a creating, operating, maintaining, or upgrading qualifying infrastructure assets the person owns; and b any activity in New Zealand that is ancillary to or facilitates the activities described in paragraph (a) , if the person carries on any such activity. Assets used for business 3 The person’s assets, to the extent they are used in, or for the purposes of, the business or project referred to in subsection (2) , comprise at least 95% of the total value of the person’s assets recognised in its balance sheet for the income year and include— a tangible assets: b intangible assets: c financial assets to which the person is a party: d goodwill: e deferred tax assets. Exclusions 4 The person does not have— a a permanent establishment outside New Zealand: b an interest in a foreign investment fund, controlled foreign company, partnership, or a trust in a foreign jurisdiction: c an asset situated outside New Zealand, other than an asset that is held in relation to the business or project described in subsection (2) and is 1 or more of the following: i a hedging arrangement: ii minor: iii situated outside New Zealand for maintenance: iv situated outside New Zealand other than for maintenance for a cumulative period of no more than 6 months. controlled foreign company, eligible infrastructure entity, financial asset, foreign investment fund, income year, New Zealand, partnership, permanent establishment, qualifying infrastructure asset Subsection (1) applies for the 2026–27 and later income years. 80 Section FE 19 replaced and amended (Banking group’s equity threshold) Replace section FE 19 with: FE 19 Banking group’s equity threshold Requirement for New Zealand bank with outbound investment: formula 1 A reporting bank to whom 1 or more of paragraphs (e) and (f) of section FE 2(1) apply, and to whom none of paragraphs (a) to (db) of that subsection apply, must calculate the equity threshold of its New Zealand banking group for a tax year, using the formula— 0.06 × (risk-weighted exposures − deductions from equity value). Requirement for foreign-owned bank: formula 2 A reporting bank to whom 1 or more of paragraphs (a) to (db) of section FE 2(1) apply must calculate the equity threshold of its New Zealand banking group for a tax year using the formula— Capital threshold × (risk-weighted exposures − deductions from equity value). Items in formulas 3 In the formulas,— a capital threshold is— i 12%, if the New Zealand banking group includes a domestic systemically important bank; and ii 11%, in any other case: b risk-weighted exposures  is the sum of the following values: i for an asset included in a balance sheet, the regulatory value of the asset: ii for an exposure not included in a balance sheet, the regulatory value of the exposure: iii for an amount of goodwill that is not taken into account in adjustment 4: intangible assets in determining the New Zealand net equity of the group under section FE 21, the financial value of the goodwill: c deductions from equity value  is the total amount of the regulatory values of adjustments 1 to 10 referred to in section FE 21. Assets of fixed establishments 4 For the purposes of this section, the assets of a fixed establishment include those treated as assets of the fixed establishment under generally accepted accounting practice. Meaning of domestic systemically important bank 5 In this section, domestic systemically important bank means a bank that the Reserve Bank of New Zealand has identified as a domestic systemically important bank. attributable FIF income method, CFC, domestic systemically important bank,  FIF,  income,  income interest,  interest, New Zealand,  New Zealand banking group, non-resident, non-resident owning body, ownership interest, reporting bank, source in New Zealand, taxpayer, trustee After section FE 19(3)(a)(ii), insert: iii adjusted, if applicable, under section FE 19B : Subsection (1) applies for measurement dates under section FE 8(3) of the Income Tax Act 2007 for periods beginning on or after 1 April 2027. Subsection (2) applies for measurement dates under section FE 8(3) of the Income Tax Act 2007 for periods beginning on or after 2 December 2028. 81 New section FE 19B inserted (Adjustment of New Zealand banking group capital threshold) After section FE 19, insert: FE 19B Adjustment of New Zealand banking group capital threshold When this section applies 1 This section applies when the Reserve Bank of New Zealand changes the countercyclical buffer. Adjustment of capital threshold 2 The capital threshold in the formula in section FE 19(1) is increased or reduced by the same number of percentage points, expressed as a decimal, as the change in the countercyclical buffer. Timing 3 The adjusted threshold applies,— a for a person using daily measurement under section FE 8(3)(a), from the first day on which the change applies: b for a person using monthly measurement under section FE 8(3)(b)— i if the change is a reduction, from the first day of the month in which the change applies; or ii if the change is an increase, from the first day after the end of that month: c for a person using quarterly measurement under section FE 8(3)(c)— i if the change is a reduction, from the first day of the quarter in which the change applies; or ii if the change is an increase, from the first day after the end of that quarter. Meaning of countercyclical buffer 4 In this section, countercyclical buffer means the countercyclical buffer that the Reserve Bank of New Zealand may impose on a bank as part of its capital requirements. countercyclical buffer, New Zealand banking group Subsection (1) applies for measurement dates under section FE 8(3) of the Income Tax Act 2007 for periods beginning on or after 2 December 2028. 82 Section GC 1 amended (Certain disposals of trading stock at below market value) After section GC 1(5)(d), insert: db under a cryptoasset-lending arrangement: In section GC 1, list of defined terms, insert “cryptoasset-lending arrangement”. Subsections (1) and (2) apply to the disposal of an original cryptoasset under a cryptoasset-lending arrangement on or after 1 April 2027. 83 Section HB 11 amended (Limitation on deductions by persons with interests in look-through companies) Replace section HB 11(2), other than the heading, with: 2 The person is denied a deduction for the income year equal to the lesser of— a the greater of zero and the amount by which the person’s look-through company deductions for the income year exceed the amount (the owner’s basis ) calculated under subsection (3) at the end of the income year; and b the greater of zero and the amount by which the person’s look-through company deductions for the income year exceed the amount of assessable income that the person has, by virtue of section HB 1, for the income year. Subsection (1) applies for the 2027–28 and later income years. 84 Section HC 7 amended (Trustee income) In section HC 7(2), replace schedule 1, part A, clause 3 with Schedule 1, Part A, clause 15 . In section HC 7(2B), replace schedule 1, part A, clause 3 with Schedule 1, Part A, clause 16 . After section HC 7(2B), insert: Tax-exempt entities’ beneficiary income 2C An amount of beneficiary income to which section HC 38B applies that is derived in an income year by a tax-exempt entity is— a treated as trustee income for the purposes of who pays the tax and who provides the return of income; and b subject to the basic rate of income tax set out in Schedule 1, Part A, clause 16B. In section HC 7, list of defined terms, insert tax-exempt entity . Subsections (3) and (4) apply for the 2028–29 and later income years. 85 Section HC 17 amended (Amounts derived as beneficiary income) Replace section HC 17(1) with: Beneficiaries other than minors, close companies, or tax-exempt entities 1 An amount that a person derives in an income year as beneficiary income is income of the person under section CV 13(a) (Amounts derived from trusts), except to the extent to which it is beneficiary income to which section HC 35, HC 38, or HC 38B applies. After section HC 17(3), insert: Beneficiaries that are tax-exempt entities 4 Subsection (1) does not apply to beneficiary income derived by a tax-exempt entity to which section HC 38B applies. The beneficiary income is excluded income of the company under section CX 58C (Amounts derived by tax-exempt entities) and treated as trustee income under section HC 38B . In section HC 17, list of defined terms, insert tax-exempt entity . Subsections (1), (2), and (3) apply for the 2028–29 and later income years. 86 Section HC 24 amended (Trustees’ obligations) After section HC 24(3B), insert: Beneficiary income of tax-exempt entities 3C Section HC 38B applies to treat beneficiary income derived by a tax-exempt entity as if it were trustee income. In section HC 24, list of defined terms, insert tax-exempt entity . Subsections (1) and (2) apply for the 2028–29 and later income years. 87 Section HC 32 amended (Liability of trustee as agent) Repeal section HC 32(4). 88 New section HC 38B inserted (Beneficiary income of tax-exempt entities) After section HC 38, insert: HC 38B Beneficiary income of tax-exempt entities When this section applies 1 This section applies when a tax-exempt entity derives an amount of beneficiary income from a trust in an income year to the extent no payment has been made to the entity by the date in subsection (2) . Date beneficiary income must be paid 2 The date referred to in subsection (1) is the later of the following: a a date that falls within 6 months of the end of the income year; and b the earlier of— i the date on which the trustee files the return of income for the income year; and ii the date by which the trustee must file a return for the income year under section 37 of the Tax Administration Act 1994. Treatment of amounts not paid by date 3 To the extent no payment has been made to the tax-exempt entity by the date set out in subsection (2) , the amount is— a excluded income of the beneficiary under section CX 58C (Amounts derived by tax-exempt entities); and b treated as trustee income for the purposes of who pays the relevant tax and who provides the return of income; and c subject to the basic rate of income tax set out in Schedule 1, Part A, clause 16B . Meaning of payment 4 In this section, payment means an amount credited to an account held by a tax-exempt entity with a registered bank or a licensed non-bank deposit taker. Relationship with other provisions 5 This section overrides sections HC 5, HC 23, and HC 32. amount, beneficiary income, excluded income, income year, licensed non-bank deposit taker, payment, registered bank, return of income, tax-exempt entity, trust, trustee, trustee income Subsection (1) applies for the 2028–29 and later income years. 89 Section HC 40 amended (De minimis trust) In section HC 40, replace section HC 35 or HC 38 with HC 35, HC 38, or HC 38B . Subsection (1) applies for the 2028–29 and later income years. 90 Section HD 4 amended (Treatment of principals) In section HD 4, paragraph (b), delete if the Commissioner agrees, . In section HD 4, list of defined terms, delete Commissioner . 91 Section HF 4 amended (What constitutes a Maori authority distribution) Repeal section HF 4(3). Replace section HF 4(7), other than the heading, with: 7 The value of a Māori authority distribution arising under subsection (1) is,— a for the disposal of property to a member without consideration, or for a consideration that is less than the market value of the property, the amount by which the market value of the property is more than the consideration; and b for the acquisition of property from a member for a consideration that is more than the market value of the property, the amount by which the market value of the property is less than the consideration; and c for a loan made to a member in an income year at no interest, or at an interest rate that is less than the prescribed rate of interest or the market rate, the amount calculated under subsection (8) . Value of distribution by way of no- or low-interest loan 8 The value of the distribution under subsection (7)(c) is the amount calculated using the formula— benchmark interest − interest paid. Items in formula 9 In the formula in subsection (8) ,— a benchmark interest is the amount of interest that would have accrued on the debt amount that is unpaid during the period if the interest had been calculated on the daily balance of the loan at a rate that is equal to whichever the member chooses of the prescribed rate of interest and the market rate: b interest paid is the total of— i the amount of interest that accrues on the debt amount during the period; or ii if the loan is a financial arrangement, the income that would have accrued to the Māori authority’s benefit in the income year as calculated under the appropriate spreading method. In section HF 4, list of defined terms, insert financial arrangement , income year , prescribed rate of interest , and spreading method , and delete taxable bonus issue . Subsections (1), (2), and (3) apply for the 2026–27 and later income years. 92 Section HF 7 replaced (Taxable Maori authority distributions) Replace section HF 7 with: HF 7 Meaning of taxable Māori authority distribution Taxable Māori authority distribution means— a a Māori authority distribution if— i the source is income of the Māori authority that is derived in the 2004–05 or later income year and is not exempt income; and ii it is not a cash distribution made to a member in relation to a notional distribution for which the Māori authority has made an election under section OB 82 (When and how co-operative company makes an election): b a taxable bonus issue. exempt income, income, income year, Māori authority, member, taxable bonus issue, taxable Māori authority distribution Subsection (1) applies for the 2026–27 and later income years. 93 Table H1 amended (Consequences of change in entity status for purpose of Maori authority rules) In table H1, row 3, replace section OK 18 with section OK 22 and replace income derived by with income of . In table H1, row 4, replace in the 2003–04 or an earlier tax year with before it ceased to be a Māori authority . Subsection (2) applies for the 2008–09 and later income years. 94 Section HM 21 amended (Exceptions for certain investors) In section HM 21(4) and (5), replace schedule 29, parts A and B with Schedule 29, Part A or B . 95 Section HM 36 amended (Calculating amounts attributed to investors) In section HM 36(4), replace Despite subsection (3) with Despite subsection (1) . 96 Section HM 46 replaced (Calculation process) Replace section HM 46, other than the heading, with: To calculate its tax liability, a multi-rate PIE must— a determine the net amount for each investor class of the PIE for an attribution period as calculated under section HM 35(2): b determine the taxable amount for each investor class of the PIE for an attribution period as calculated under section HM 35(5): c calculate its tax liability for each investor in an investor class for each day of an attribution period. 97 Section HR 8 amended (Transitional residents) In section HR 8(1), delete CD 45, . In section HR 8(2)(b), after YD 1(3) , insert and they are not treated under a double tax agreement as not being resident in New Zealand . In section HR 8(3)(b)(iii), before the last day , insert subject to subsection (3B) , . After section HR 8(3), insert: When transitional residence period ends for DTA non-residents 3B For the purposes of subsection (3), if the period for a person under subsection (3)(a) begins on the day the person ceases to be treated under a double tax agreement as not being resident in New Zealand, the words “non-residence period ends” in subsection (3)(b)(iii) are treated as replaced by the words “the day the person ceases to be treated under a double tax agreement as not being resident in New Zealand occurs”. In section HR 8, list of defined terms, insert double tax agreement . 98 Section HR 12 amended (Non-exempt charities: treatment of tax-exempt accumulations) After section HR 12(2)(a), insert: ab the person is a person that, if they derived income, it would be exempt under section CW 55BAA (Federation of Polytechnics Committee, industry skills boards, and industry skills board subsidiaries): In section HR 12(3)(a)(i), delete , other than a tax charity as defined in paragraph (c) of the definition of tax charity . In section HR 12, list of defined terms, insert tax charity . 99 Section HZ 13 amended (Transitional rule for application of global anti-base erosion model rules) After section HZ 13(2), insert: UTPR safe harbour guidance 2A For the purposes of section HP 3(3)(b)(ii), the UTPR safe harbour guidance published by the OECD in May 2026 is treated as if it was published before the start of the fiscal year. In section HZ 13(3), after the definition of side-by-side package guidance , insert: UTPR safe harbour guidance means the guidance set out in Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Application of the Transitional UTPR Safe Harbour to MNE Groups with 52-53-Week Fiscal Years, as amended from time to time. In section HZ 13, list of defined terms, insert UTPR safe harbour guidance . 100 LA 7 amended (Remaining refundable credits: tax credits for social policy and other initiatives) After section LA 7(1)(b), insert: c section LD 3A(6) (In-year tax credits for charitable or other public benefit gifts). 101 LD 1 amended (Tax credits for charitable or other public benefit gifts) Replace section LD 1(3), other than the heading, with: 3 In the formula, total gifts is the total amount of all charitable or other public benefit gifts made by the person in the tax year, but not including any gifts for which a person has an in-year tax credit under section LD 3A that has been claimed under section 41BA of the Tax Administration Act 1994, and is limited to the lesser of— a the amount of the person’s taxable income for that tax year; and b $100,000. In section LD 1(4), replace tax agent or representative with tax agent, representative, or bookkeeper in each place. In section LD 1, list of defined terms, insert bookkeeper . 102 New cross-heading and section LD 3A inserted After section LD 3, insert: In-year tax credits LD 3A In-year tax credits for charitable or other public benefit gifts Who this section applies to 1 This section applies to a person who makes a charitable or other public benefit gift during a tax year and— a has reportable income for the tax year; and b meets the requirements of section 41BA of the Tax Administration Act 1994. Amount of in-year tax credit 2 The person has an in-year tax credit equal to an amount calculated using the formula— in-year gift × 33⅓%. Item in formula 3 In the formula, in-year gift is the amount of a charitable or other public benefit gift made by the person during the tax year, limited to the amount of the person’s reportable income for that tax year at the time that the gift is made. Total amount of in-year gifts 4 The total amount of in-year gifts that a person makes during the year, in relation to which a person has in-year tax credits under subsection (2) , is limited to the lesser of— a the amount of the person’s reportable income for that tax year; and b $100,000. No double counting 5 A person who has an in-year tax credit under this section does not also have a tax credit under section LD 1 to the extent of the in-year tax credit. Other taxable income 6 If a person has an in-year tax credit under this section and has other taxable income in addition to reportable income, the person may apply under section 41A for a refund relating to the other taxable income to the extent they have a tax credit under section LD 1. Refundable credits 7 A credit under this section is a refundable tax credit under section LA 7 (Remaining refundable credits: tax credits for social policy and other initiatives) and is excluded from the application of sections LA 2 to LA 6 (which relate to a person’s income tax liability). Exclusions 8 This section does not apply to— a an absentee: b a company: c a public authority: d a Māori authority: e an unincorporated body: f a trustee liable for income tax under subpart HD and section HZ 2 (which relate to trusts and distributions from trusts). absentee, amount, apply, charitable or other public benefit gift, company, income tax, Māori authority, public authority, refundable tax credit, reportable income, tax credit, tax year, taxable income, trustee 103 New section LE 4C inserted (Trustees for certain tax-exempt entities) After section LE 4B, insert: LE 4C Trustees for certain tax-exempt entities When this section applies 1 This section applies when a person who has a tax credit under section LE 1 is the trustee of a trust and a tax-exempt entity derives beneficiary income from the trust. Trustee treated as beneficiary 2 To the extent to which section HC 38B (Beneficiary income of tax-exempt entities) applies, the person is treated as deriving the entity’s beneficiary income as a beneficiary. beneficiary income, tax credit, tax-exempt entity, trustee Subsection (1) applies for the 2028–29 and later income years. 104 Section LS 2 amended (Tax credits for investors in multi-rate PIEs) In section LS 2(1)(c)(ii), replace section CX 56(2)(b), (c) or (d) with section CX 56(2)(b) or (c) . In section LS 2, list of defined terms, insert income tax liability . 105 Section LY 1 amended (Research and development tax credits) After section LY 1(2)(f), insert: g section LY 11 provides for in-year R&D payments and the reconciliation of those payments against a person’s research and development tax credit. In section LY 1(3)(a), after LY 4 insert , less any amount reduced under section LY 11(6) . In section LY 1, list of defined terms, insert in-year R&D payments . Subsections (1), (2), and (3) apply for the 2027–28 and later income years. 106 New section LY 11 inserted (In-year R&D payments) After section LY 10, insert: LY 11 In-year R&D payments Who this section applies to 1 This section applies to a person for a claim period if— a section LY 3 applies to the person for the income year to which the claim period relates; and b the person has been approved by the Commissioner for in-year R&D payments under section 68CG of the Tax Administration Act 1994. Entitlement to in-year R&D payment 2 A person is entitled to an in-year R&D payment for a claim period to which subsection (1) applies if the claim period has elapsed before the claim is made. Amount of in-year R&D payment per claim period 3 The amount of the person’s in-year R&D payment for a claim period is the lesser of— a the amount of the person’s eligible research and development expenditure incurred during the claim period multiplied by 0.15; and b the person’s labour-related cap for the claim period; and c the amount approved by the Commissioner under section 68CG(5) of the Tax Administration Act 1994. Annual cap on in-year R&D payments 4 Despite subsection (3) , the amount of in-year R&D payments for the income year must not exceed the amount calculated using the formula— estimated expenditure × 0.8 × 0.15. Item in formula 5 In the formula in subsection (4) , estimated expenditure is the amount of eligible research and development expenditure estimated in the person’s approval for the income year under section 68CB or 68CC of the Tax Administration Act 1994, as applicable. End-of-year reconciliation 6 The amount of the person’s tax credit under section LY 1(3) for an income year is reduced by the total amount of in-year R&D payments received by the person for the income year. Excess in-year R&D payments 7 If the amount of in-year R&D payments received by the person exceeds the amount of the person’s research and development tax credit for the income year, the person is liable to pay tax for the income year equal to the excess. Meaning of claim period 8 Claim period means a period specified by a person in an application made under section 68CG of the Tax Administration Act 1994 that— a falls wholly within a single income year; and b begins on— i the first day of the income year; or ii the first day immediately after the end of another claim period for the income year; and c comprises a period of 3 months or a multiple of 3 months. Meaning of in-year R&D payment 9 In-year R&D payment means a payment calculated under subsections (3) and (4) that represents an advance payment of a person’s research and development tax credit for the income year. Meaning of labour-related cap 10 Labour-related cap , for a claim period, means the amount that would be the person’s refundability cap under section LA 5(5B) and (5C) (Treatment of remaining credits), treating references to a tax year as references to the claim period. Relationship with section LY 8 11 This section applies before section LY 8. amount, claim period, Commissioner, eligible research and development expenditure, income year, in-year R&D payment, labour-related cap, refundability cap, research and development tax credit Subsection (1) applies for the 2027–28 and later income years. 107 Section OK 2 amended (MACA payment of tax or transfer to account) After section OK 2(3)(b), insert: bb a transfer from a tax pooling account to a tax account with the Commissioner; or In section OK 2, list of defined terms, insert tax account with the Commissioner and tax pooling account . Subsections (1) and (2) apply for the 2026–27 and later income years. 108 New sections OK 3B and OK 3C inserted After section OK 3, insert: OK 3B MACA deposit in tax pooling account Credit 1 A Māori authority has a Māori authority credit for an amount provided by it and paid by an intermediary into a tax pooling account. Table reference 2 The Māori authority credit in subsection (1) is referred to in table O17: Māori authority credits, row 4A (deposit into tax pooling account). Credit date 3 The credit date is the day the amount is deposited. amount, Māori authority, Māori authority credit, intermediary, pay, tax pooling account OK 3C MACA transfer of entitlement to funds in tax pooling account Credit 1 A Māori authority has a Māori authority credit for an amount representing an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another person to the Māori authority. Table reference 2 The Māori authority credit in subsection (1) is referred to in table O17: Māori authority credits, rows 4AB to 4AE (transfer from tax pooling account). Credit date 3 The credit date is,— a for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the Māori authority’s tax account with the Commissioner, the credit date under section RP 19 (Transfers from tax pooling accounts) for the amount transferred; or b for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the Commissioner to satisfy a liability of the Māori authority that is an increased amount of tax under section RP 17B (Tax pooling accounts and their use) other than income tax, the date of the transfer; or c for an entitlement to funds that are refunded by the intermediary from the tax pooling account to the Māori authority, the date of the refund; or d for an entitlement that is transferred by the intermediary from the Māori authority to another person, the date of the transfer. amount, Commissioner, Māori authority, Māori authority credit, intermediary, pay, tax account with the Commissioner, tax pooling account, transfer Subsection (1) applies for the 2026–27 and later income years. 109 New section OK 9B inserted (MACA elimination of double debit) After section OK 9, insert: OK 9B MACA elimination of double debit When this section applies 1 This section applies when a Māori authority debit in a Māori authority credit account under section OK 15 has the effect of cancelling a Māori authority credit under section OK 3B . Credit 2 The Māori authority has a Māori authority credit for an amount equal to the amount of the debit referred to in subsection (1) , and— a another debit arises under section OK 13B for a refund of the amount of the deposit on a debit date after the debit date for the debit for loss of shareholder continuity; or b another debit arises under section OK 13C for a transfer to another person of the entitlement to the amount of the deposit on a debit date after the debit date for the debit for the loss of shareholder continuity; or c the deposit is taken into account under section RP 19 (Transfers from tax pooling accounts) in determining the balance of the Māori authority’s tax account with the Commissioner after the debit date for the debit for loss of shareholder continuity. Table references 3 The table references are the following: a the Māori authority debit in subsection (1) is referred to in table O18: Māori authority debits, row 7 (debit for loss of shareholder continuity for Māori authority that is a company): b the Māori authority credit in subsection (1) is referred to in table O17: Māori authority credits, row 4A (deposit in tax pooling account): c the Māori authority credit in subsection (2) is referred to in table O17: Māori authority credits, row 10 (eliminating debit for loss of shareholder continuity cancelling tax pooling account deposit that is refunded or credited): d the Māori authority debit in subsection (2)(a) is referred to in table O18: Māori authority debits, row 5B (refund from tax pooling account): e the Māori authority debit in subsection (2)(b) is referred to in table O18: Māori authority debits, row 5C (transfer of entitlement to another person in tax pooling account). Credit date 4 The credit date is the day— a the deposit is refunded; or b the entitlement is transferred; or c the credit arises in the Māori authority’s tax account with the Commissioner. amount, Commissioner, Māori authority, Māori authority credit, Māori authority credit account, Māori authority debit, shareholder, tax account with the Commissioner Subsection (1) applies for the 2026–27 and later income years. 110 New sections OK 13B and OK 13C inserted After section OK 13, insert: OK 13B MACA refund from tax pooling account When this section applies 1 This section applies for a Māori authority when— a it has an entitlement to an amount in a tax pooling account and has a Māori authority credit for the entitlement under— i section OK 3B  (table O17: Māori authority credits, row 4A (deposit in tax pooling account)); or ii section OK 3C  (table O17: Māori authority credits, row 4AB to 4AE (transfer from tax pooling account)); and b the intermediary refunds the amount from the tax pooling account to the Māori authority. Debit 2 The Māori authority has a Māori authority debit for the amount of the refund. Table reference 3 The Māori authority debit in subsection (2) is referred to in table O18: Māori authority debits, row 5B (refund from tax pooling account). Debit date 4 The debit date for the Māori authority is the date found by applying the following paragraphs in order: a the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the Māori authority credit account on that date: b the day the refund is made to the extent of the remaining amount of the debit that is no more than the credit balance in the Māori authority credit account on the day of refund: c the last day of the previous tax year for the remainder of the debit. amount, intermediary, Māori authority, Māori authority credit, Māori authority credit account, Māori authority debit, pay, tax pooling account, tax year OK 13C MACA transfer of entitlement to funds from tax pooling account When this section applies 1 This section applies for a Māori authority when— a it has an entitlement to an amount in a tax pooling account and has a Māori authority credit for the entitlement under— i section OK 3B  (table O17: Māori authority credits, row 4A (deposit in tax pooling account)); or ii section OK 3C  (table O17: Māori authority credits, row 4AB to 4AE (transfer from tax pooling account)); and b the intermediary transfers the entitlement from the Māori authority to another person. Debit 2 The Māori authority has a Māori authority debit for a tax year for the amount of the transfer of the entitlement to funds in the tax pooling account. Table reference 3 The Māori authority debit in subsection (2) is referred to in table O18: Māori authority debits, row 5C (transfer of entitlement to another person in tax pooling account). Debit date 4 The debit date for the Māori authority is— a the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the Māori authority credit account on that date; or b the day the transfer is made to the extent of the remaining amount of the debit that is no more than the credit balance in the Māori authority credit account on the day of the transfer; or c the last day of the previous tax year for the remainder of the debit. amount, intermediary, Māori authority, Māori authority credit, Māori authority credit account, Māori authority debit, pay, tax pooling account, tax year, transfer Subsection (1) applies for the 2026–27 and later income years. 111 Table O17 amended (Table O17: Maori authority credits) In table O17, after row 3C, insert: This is a small table of 5 rows and 4 columns, setting out date for Māori authority credits for tax pooling account credits. This table amends table O17 of the Income Tax Act 2007 and should be read with that table to provide understanding of the context. 4A Deposit in tax pooling account day of payment section OK 3B 4AB Transfer from tax pooling account credit date in section RP 19 section OK 3C(3)(a) 4AC Transfer from tax pooling account day of transfer section OK 3C(3)(b) 4AD Transfer from tax pooling account day of refund section OK 3C(3)(c) 4AE Transfer from tax pooling account day of transfer section OK 3C(3)(d) In table O17, after row 9, insert: The following table is small in size and has 4 columns. This table amends table O17 of the Income Tax Act 2007 and should be read with that table to provide understanding of the context. 10 Eliminating debit for loss of shareholder continuity cancelling tax pooling account deposit refunded or credited day of refund of credit section OK 9B Subsections (1) and (2) apply for the 2026–27 and later income years. 112 Table O18 amended (Table O18: Maori authority debits) In table O18, after row 5, insert: The following table is small in size and has 4 columns. This table amends table O18 of the Income Tax Act 2007 and should be read with that table to provide understanding of the context. 5B Refund from tax pooling account set out in section OK 13B section OK 13B 5C Transfer of entitlement to another person in tax pooling account set out in section OK 13C section OK 13C Subsection (1) applies for the 2026–27 and later income years. 113 New section OZ 19 inserted (Validation of tax pooling arrangements for Māori authorities) Insert, as the last section of subpart OZ: OZ 19 Validation of tax pooling arrangements for Māori authorities When this section applies 1 This section applies to a tax position taken before the first day of the 2026–27 income year by a Māori authority, or another person to the extent the tax position relates to a Māori authority, in relation to an amount, transfer, refund, payment, credit, debit, entitlement, or other thing relating to— a a tax pooling account; and b a Māori authority credit account, an income tax liability of a Māori authority, or both. Access to tax pooling for Māori authorities 2 The tax position, and anything done or omitted to be done in consequence of it, is treated as valid and effective for the purposes of the Inland Revenue Acts to the same extent as it would be if the amendments made by sections 107, 108, 109, 110, 111, and 112 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 had applied when the tax position was taken. amount, income tax liability, income year, Inland Revenue Acts, Māori authority, Māori authority credit account, tax pooling account, tax position 114 New section RA 15B inserted (Due date for excess in-year R&D payments) After section RA 15, insert: RA 15B Due date for excess in-year R&D payments Who this section applies to 1 This section applies to a person who is liable to pay tax under section LY 11(7) . Payment due date 2 The person must pay the tax by the later of— a the person's terminal tax date for the tax year; and b the date that is 30 days after the due date under section 33E of the Tax Administration Act 1994 for filing the supplementary return for the tax year; and c if the person filed the supplementary return by the due date, the date that is 3 months after the due date under section 33E of that Act for filing the supplementary return for the tax year, or a date determined by the Commissioner. Commissioner, pay, research and development tax credit, tax, tax year, terminal tax date Subsection (1) applies for the 2027–28 and later income years. 115 Section RD 5 amended (Salary or wages) After section RD 5(10), insert: Honoraria paid by not-for-profit organisation 11 An amount of an honorarium paid by a not-for-profit organisation to a volunteer as defined in section CW 62B(4) (Voluntary activities) is included in salary or wages if the not-for-profit organisation chooses to treat the amount as salary or wages. In section RD 5, list of defined terms, insert honorarium and not-for-profit organisation . 116 Section RD 8 amended (Schedular payments) Replace section RD 8(1)(b)(v) and (vi) with: v a payment by a person under a contract, agreement, or arrangement for services provided by a non-resident contractor who has full relief from tax for that payment under a double tax agreement and is present in New Zealand under all contracts, agreements, or arrangements with that person for 92 or fewer days in a 12-month period; or vi a contract payment for a contract activity or service of a non-resident contractor under a contract, agreement, or arrangement when the total amount paid for those activities to the contractor or another person on their behalf under that contract, agreement, or arrangement is $75,000 or less in a 12-month period; or After section RD 8(1)(b)(viii), insert: ix a contract payment for a contract activity or service provided by a branch, limited partnership, or representative office (the provider ) if the person making the payment is satisfied the provider has a tax file number or registration number, as defined under the Goods and Services Tax Act 1985, and has been included on the relevant register under the Companies Act 1993 or Limited Partnerships Act 2008 for at least 24 months before the payment. After section RD 8(3), insert: Honoraria paid by not-for-profit organisation 4 Despite subsection (1), an amount of an honorarium paid by a not-for-profit organisation to a volunteer as defined in section CW 62B(4) (Voluntary activities) is not a schedular payment of a class set out in Schedule 4, Part B if the not-for-profit organisation chooses to treat the amount as salary or wages. 117 Section RD 25 amended (FBT rules and their application) In section RD 25(1)(a), replace CX 38 with CX 37 . In section RD 25(1)(d), replace Fringe benefit values for motor vehicles with Motor vehicles provided as fringe benefits . 118 Section RD 28 amended (Private use of motor vehicle: calculation methods) In the heading to section RD 28, replace calculation with valuation . In section RD 28(1), after may use a , insert vehicle valuation . In section RD 28(2), replace using either of with for the employee using 1 of and replace schedule 5 (Fringe benefit values for motor vehicles) with Schedule 5, Part A (Motor vehicles provided as fringe benefits) . In section RD 28(4), replace either of with 1 of and replace schedule 5 with Schedule 5, Part A . In the heading to section RD 28(5), after method , insert for pre-2006 purchases . In section RD 28(5), replace schedule 5, with Schedule 5, Part A , . 119 New section RD 28B inserted (Requirement for motor vehicles to be branded) After section RD 28, insert: RD 28B Requirement for motor vehicles to be branded Requirement for motor vehicles to be branded 1 A motor vehicle that is owned, rented, or leased by an employer is required to be a branded vehicle to fulfil the motor vehicle requirements for any of categories 2, 4, or 5 of Schedule 5, Part B (Motor vehicles provided as fringe benefits). Exception for certain vehicles 2 Subsection (1) does not apply for any of categories 2, 4, or 5 if a motor vehicle was purchased by an employer before the date of introduction of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill or leased or rented under an agreement entered into by an employer on or before that date. Exception for farming business 3 Subsection (1) does not apply to a vehicle owned or leased by an employer who— a carries on a farming business; and b is not a widely-held company. Branding requirement may be waived 4 The Commissioner may waive the requirement under subsection (1) for a motor vehicle to be a branded vehicle if the Commissioner considers that identifying marking is not appropriate because of— a the sensitive nature of the employer’s business or the employee’s role in the business; or b the nature of the vehicle’s operation. branded vehicle, business, Commissioner, employee, employer, motor vehicle, widely-held company 120 New section RD 28C inserted (Private use of motor vehicle: percentage of private use) After section RD 28B , insert: RD 28C Private use of motor vehicle: percentage of private use What this section does 1 This section applies to determine the extent of an employee’s private use for calculating the value of a benefit under section RD 29 when an employer is making a motor vehicle available for the employee’s private use. Percentage of private use 2 The table in Schedule 5, Part B (Motor vehicles provided as fringe benefits) must be used to determine the category and corresponding percentage of private use for the purposes of calculating the value of the benefit under section RD 29. When no category applies 3 If no category in the table applies, the employer must use category 1 in row 1 of the table in Schedule 5, Part B . Change in category 4 If a category ceases to apply to an employee because of a material change in circumstances, the employer must, on the first day of the next quarter, change to the applicable category, regardless of whether the employer provides returns under section 46B or 46C of the Tax Administration Act 1994. employee, employer, motor vehicle, private use, quarter 121 Section RD 29 amended (Private use of motor vehicle: formulas) In section RD 29(2), replace the formula with: vehicle valuation amount × percentage private use ÷ 4. In section RD 29(4), replace the formula with: vehicle valuation amount × percentage private use. Replace section RD 29(5) with: Items in formulas 5 In the formulas,— a vehicle valuation amount is the applicable amount calculated under Schedule 5, Part A (Motor vehicles provided as fringe benefits), being the value of the benefit that would have been received for unlimited private use of the vehicle in the quarter, income year, or tax year: b percentage private use is the percentage of private use of the vehicle according to the application category in Schedule 5, Part B . Repeal section RD 29(6). In section RD 29, list of defined terms, delete work-related vehicle . 122 Section RD 30 repealed (Private use of motor vehicle: 24-hour period) Repeal section RD 30. 123 Section RD 31 repealed (Motor vehicle test period) Repeal section RD 31. 124 Section RD 32 repealed (Replacement motor vehicles) Repeal section RD 32. 125 Section RD 56 amended (Private use of motor vehicle: when schedular value not used) In section RD 56(1), replace schedule 5, clause 9 (Fringe benefit values for motor vehicles) with Schedule 5, Part A, clause 9 (Motor vehicles provided as fringe benefits) . In section RD 56(2), replace RD 30 with RD 29 and replace schedule 5, with Schedule 5, Part A , . 126 Section RD 57 amended (Private use of motor vehicle: when schedular value used) In section RD 57(1), replace schedule 5, clause 9 (Fringe benefit values for motor vehicles) with Schedule 5, Part A , clause 9 (Motor vehicles provided as fringe benefits) . In section RD 57(2), replace RD 30 with RD 29 and replace schedule 5, with Schedule 5, Part A, . In section RD 57(3), replace in schedule 5, with in Schedule 5, Part A , . 127 Section RM 10 amended (Using Refund to satisfy tax liability) Replace section RM 10(1), other than the heading, with: 1 This section applies when a person is entitled to an amount that is— a a refund of tax under sections RM 2 and RM 4 to RM 6; or b a refundable tax credit under section LA 5(5) (Treatment of remaining credits): or c an in-year R&D payment under section LY 11 (In-year R&D payments). Adjustment for family tax credits 1B Section LB 4 (Tax credits for families) may apply to adjust the amount referred to in subsection (1) . In section RM 10(3), replace the amount of the refund with the amount . In section RM 10, list of defined terms, insert in-year R&D payment . Subsections (1), (2), and (3) apply for the 2027–28 and later income years. 128 Section RP 17B amended (Tax pooling accounts and their use) After section RP 17B(2)(e), insert: eb interest on excess in-year R&D payments under section 120VF of the Tax Administration Act 1994: In section RP 17B, list of defined terms, insert in-year R&D payment . Subsections (1) and (2) apply for the 2027–28 and later income years. 129 Section YA 1 amended (Definitions) This section amends section YA 1. Insert, in appropriate alphabetical order: Active Investor Plus Visa is defined in section EW 41(4) (Consideration when person enters rules: accrued entitlement) for the purposes of that section Insert, in appropriate alphabetical order: AIM method means the method provided for under section RC 7B (AIM method) Insert, in appropriate alphabetical order: bookkeeper is defined in section 3(1) of the Tax Administration Act 1994 Insert, in appropriate alphabetical order: branded vehicle — a is defined in section CX 36B (Meaning of branded vehicle): b is defined in section CX 19E (Emergency vehicles) for the purposes of that section Replace the definition of car with: car is defined in section EZ 16(6) (Amount of depreciation loss for plant or machinery additional to section EZ 15 amount) for the purposes of that section and section EZ 28 (Meaning of qualifying asset) Insert, in appropriate alphabetical order: claim period is defined in section LY 11 (In-year R&D payments) for the purposes of that section Insert, in appropriate alphabetical order: combined planting is defined in section DO 8 (Meaning of combined planting) for the purposes of sections DO 5 to DO 7 (which relate to listed horticultural plants) In the definition of company , paragraph (abc), after trustee , insert , unless the company has made an election under section HF 2(2) (Who is eligible to be a Māori authority?) . Insert, in appropriate alphabetical order: countercyclical buffer is defined in section FE 19B (Adjustment of New Zealand banking group capital threshold) for the purposes of that section Insert, in appropriate alphabetical order: cryptoasset-lending arrangement means an arrangement, entered into on or after 1 April 2027, that is a returning cryptoasset transfer, and— a the term of the arrangement is expected to be 1 year or less; and b the terms and conditions of the arrangement, including any collateral, are ordinary commercial terms and conditions consistent with those that would apply between parties negotiating at arm’s length; and c the cryptoasset supplier receives under the arrangement the original cryptoasset or an identical cryptoasset on or before the date that is 1 year after the disposal of the original cryptoasset, or by a later date allowed by the Commissioner cryptoasset-lending right means, for a cryptoasset supplier under a cryptoasset-lending arrangement,— a a conditional or unconditional right to acquire the original cryptoasset or an identical cryptoasset under the arrangement: b a cryptoasset that represents a right referred to in paragraph (a) cryptoasset supplier means a person, described as a cryptoasset supplier in the definition of returning cryptoasset transfer, from whom an original cryptoasset is disposed of under a returning cryptoasset transfer Repeal the definition of day . Insert, in appropriate alphabetical order: domestic systemically important bank is defined in section FE 19 (Banking group’s equity threshold) for the purposes of that section Replace the definition of eligible infrastructure entity with: eligible infrastructure entity is defined in section FE 7D (Meaning of eligible infrastructure entity) for the purposes of sections FE 2 (When this subpart applies) and FE 7C (Exemption for eligible infrastructure) Repeal the definition of emergency call . Insert, in appropriate alphabetical order: emergency vehicle is defined in section CX 19E (Meaning of emergency vehicle) Insert, in appropriate alphabetical order: equity threshold means, for a New Zealand banking group, the amount calculated under section FE 19(1) (Banking group’s equity threshold) In the definition of excluded RAM interest , replace EX 46B(8) (Limits on choice of revenue account method) with EX 46(16) (Limits on choice of calculation method) . In the definition of extended RAM interest , replace EX 46B(7) (Limits on choice of revenue account method) with EX 46(14) (Limits on choice of calculation method) . In the definition of extended RAM taxpayer , replace EX 46B(10) (Limits on choice of revenue account method) with EX 46(15) (Limits on choice of calculation method) . In the definition of finance lease , after paragraph (c), insert: d does not include an arrangement that provides a person with a right to use software, unless the arrangement provides the person with 1 or both of the following: i an exclusive right to use the software: ii ownership of, or an option to acquire ownership in, the software In the definition of hire purchase agreement , paragraph (a)(i), delete , however the agreement describes the payments . Insert, in appropriate alphabetical order: incidental travel is defined in section CX 36(2) (Meaning of private use and incidental travel) for the purposes of that section Insert, in appropriate alphabetical order: industry skills board subsidiary is defined in section CW 55BAA (Federation of Polytechnics Committee and industry skills boards) for the purposes of that section Insert, in appropriate alphabetical order: in-year R&D payment is defined in section LY 11 (In-year R&D payments) Insert, in appropriate alphabetical order: labour-related cap is defined in section LY 11 (In-year R&D payments) for the purposes of that section In the definition of listed horticultural plant , replace DO 9 with DO 8 and replace relating to horticultural plants with relating to listed horticultural plants . Replace the definition of main benefit with: main benefit means a main benefit as defined in paragraph (a) of the definition of main benefit in Schedule 2 of the Social Security Act 2018 Repeal the definition of main benefit equivalent assistance . In the definition of motor vehicle ,— a in paragraph (b), delete and in the definition of car , ; and b in paragraph (b)(ii), replace the gross laden weight of which is more than 3500 with with a gross laden weight of more than 6000 ; and c after paragraph (b)(ii), insert: iii does not include a rental vehicle used in a business that hires vehicles to the public: d after paragraph (b), insert: c is further defined in section EZ 16(6) (Amount of depreciation loss for plant or machinery additional to section EZ 15 amount) for the purposes of that section and section EZ 28 (Meaning of qualifying asset) Insert, in appropriate alphabetical order: not-for-profit organisation means an organisation,— a whether incorporated or not,— i that does not have the purpose of making a profit for a member, proprietor, or shareholder; and ii has a constitution that prohibits a distribution of property in any form to a member, proprietor, or shareholder; or b that is incorporated under the Incorporated Societies Act 2022 Insert, in appropriate alphabetical order: original cryptoasset means the cryptoasset that is described as the original cryptoasset in the definition of returning cryptoasset transfer Insert, in appropriate alphabetical order: payment is defined in section HC 38B(4) (Beneficiary income of tax-exempt entities) for the purposes of that section Repeal the definition of planting . Repeal the definition of plot . In the definition of private use , replace use) with use and incidental travel) . Insert, in appropriate alphabetical order: qualifying cryptocurrency means a cryptocurrency that— a is denominated by reference to a fiat currency; and b is designed to maintain a stable value relative to the fiat currency; and c when acquired, has a market value that does not differ by more than 2% from the amount of the fiat currency to which the cryptocurrency is denominated Insert, in appropriate alphabetical order: quarantined foreign financial arrangement is defined in section EW 13 (When use of spreading method not required) In the definition of RAM interest , replace EX 46B(6) (Limits on choice of revenue account method) with EX 46(13) (Limits on choice of calculation method) . Repeal the definition of RAM taxpayer . Insert, in appropriate alphabetical order: recipient entity is defined in section EV 1(3) (Treaty of Waitangi settlement redress assets: valuation) for the purposes of that section redress asset is defined in section EV 1(3) (Treaty of Waitangi settlement redress assets: valuation) for the purposes of that section Repeal the definition of replaced area fraction . In the definition of replacement plant , replace DO 6, DO 7, and DO 9 with DO 6 and DO 7 and after which relate to , insert listed . Replace the definition of representative with: representative is defined in section 3(1) of the Tax Administration Act 1994 Insert, in appropriate alphabetical order: returning cryptoasset transfer means an arrangement under which— a a person (the cryptoasset supplier ) disposes of a cryptoasset (the original cryptoasset ); and b it is conditionally or unconditionally agreed that the original cryptoasset or an identical cryptoasset may be transferred to the cryptoasset supplier Insert, in appropriate alphabetical order: tax-exempt entity , for the purposes of sections CX 58C , HC 7, HC 17, HC 24, HC 38B, and LE 4C , (which relate to trust income) means an entity that derives exempt income under any of sections CW 38 to CW 42B, CW 46 to CW 52, CW 55BA, CW 55BAA, or CW 55BC (which relate to tax exempt income of certain entities) Insert, in appropriate alphabetical order: UTPR safe harbour guidance is defined in section HZ 13(3) (Transitional rule for application of global anti-base erosion model rules) for the purposes of that section Repeal the definition of work-related vehicle . Subsections (7), (25), (26), and (38) apply for the 2027–28 and later income years. Subsections (10), (13), and (17) apply for measurement dates under section FE 8(3) of the Income Tax Act 2007 for periods beginning on or after 1 April 2027. Subsections (11), (32), and (45) apply to the disposal of an original cryptoasset under a cryptoasset-lending arrangement on or after 1 April 2027. Subsections (18), (19), (20), (39), and (40) apply for the 2026–27 and later income years. Subsection (31) applies for the 2024–25 and later income years. Subsections (33) and (46) apply for the 2028–29 and later income years. Subsection (37) applies to qualifying cryptocurrencies disposed of on or after 1 April 2027. 130 Section YD 1 amended (Residence of natural persons) In section YD 1(14), replace YD 1B(4) with YD 1B(2B) , (4), . 131 Section YD 1B amended (Non-resident visitors) After section YD 1B(2), insert: Ending non-resident visitor status: family scheme entitlement 2B If a person who is a non-resident visitor ceases to meet the requirement in subsection (2)(f),— a for the purposes of determining the person’s liabilities and obligations under this Act, the person stops being a non-resident visitor on the first day of the period for which the entitlement under the family scheme is received by the person, or their spouse, civil union partner, or de facto partner: b for the purposes of determining the liabilities and obligations under this Act of any other person, the person stops being a non-resident visitor on the date the person, or their spouse, civil union partner, or de facto partner, makes an application under section 41 of the Tax Administration Act 1994 that results in receipt of an entitlement to a tax credit under subparts MA to MG and MZ (which relate to tax credits for families). In section YD 1B(5), replace (f) with (e) . 132 Section YD 4 amended (Classes of income treated as having New Zealand source) Replace section YD 4(17D)(b) with: b fees for technical, management, or similar services that— i are treated as royalties under a double tax agreement: ii may be taxed in New Zealand under a provision of a double tax agreement that applies specifically to those fees: 133 Schedule 1 amended (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) In Schedule 1, Part A, after clause 17, insert: Schedular taxable income: Beneficiary income of tax-exempt entities 18 The basic rate of income tax for a person on each dollar of the person’s schedular taxable income that is income from a trust to which section HC 38B (Beneficiary income of tax-exempt entities) applies is 0.39. In Schedule 1, Part D, replace clause 5, other than the heading, with: 5 The payment rate for a payment of resident passive income that consists of a dividend, or a replacement payment under a share-lending arrangement, is— a if the payer and the recipient of the payment agree, 0.39; or b 0.33. Subsection (1) applies to the 2028–29 and later income years. Subsection (2) applies to dividends paid on or after 1 April 2027. 134 Schedule 5 amended (Fringe benefit values for motor vehicles) This section amends Schedule 5. In the heading,— a replace Fringe benefit values for motor vehicles with Motor vehicles provided as fringe benefits ; and b before DI 5 , insert CX 6, CX 36, ; and c after RD 28 , insert RD 28B . After the heading, insert: A Valuation methods for determining value of benefit for motor vehicles Replace clause 1 with: 1 The following table determines the value of the benefit that an employee has for a quarter, tax year, or income year when section RD 60 applies, if in the quarter, tax year, or income year, a motor vehicle is provided by a person for the private use of an employee, or is made available for their private use: This is a small table of 6 rows and 7 columns setting out the value of a motor vehicle fringe benefit. Cost price basis Tax book value basis New investment asset deduction claimed under section DI 5 No new investment asset deduction claimed Motor vehicle type Quarter Tax or income year Quarter Tax or income year Quarter Tax or income year Petrol or diesel 5% of cost price 20% of cost price 10.35% of tax value 41.4% of tax value 9% of tax value 36% of tax value Hybrid (including plug-in) 4.9% of cost price 19.6% of cost price 10.13% of tax value 40.52% of tax value 8.53% of tax value 34.12% of tax value Electric 4.25% of cost price 17% of cost price 8.75% of tax value 35% of tax value 7.44% of tax value 29.76% of tax value 1B For the purposes of the table in clause 1 ,— a cost price , – i if the vehicle is owned by the person, is the cost price to the person; and ii if the vehicle is leased or rented by the person from another person, whether they are associated or not, is the cost price to its owner at the time the benefit is provided; and b tax value , – i if the vehicle is owned by the person, is the tax value to the person; and ii if the vehicle is leased or rented by the person from another person, whether they are associated or not, is the cost price to its owner at the time the benefit is provided; and c the terms cost price and tax value include GST. In clause 9, after as modified by insert the formula . Replace clause 10 with: 10 The following formula applies to a person who values a vehicle on the basis of its cost price exclusive of GST or its tax value calculated exclusive of GST: value rate × (value rate × GST rate) value rate is the applicable rate from the table in clause 1 if the person had valued the vehicle on its cost price or tax value inclusive of GST GST rate is the rate of GST applying on the last day of the relevant quarter. In clause 13(a), replace $8,333 with $8,333 (including GST) . In clause 13(b), replace $7,317 with $7,317 (including GST) . After clause 13, insert: B Categories to determine private use percentage of motor vehicles The following table is small in size and has 5 columns. Column 1 is headed Cat. Column 2 is headed Motor vehicle used. Column 3 is headed Conditions for use of motor vehicles. Column 4 is headed Requirements for motor vehicle. Column 5 is headed % of private use. This table will be inserted under clause 13 of Schedule 5 of the Income Tax Act 2007. Cat Motor vehicle used Conditions for use of motor vehicles Requirements for motor vehicle % of private use 1 Mainly for private use 100 2 Mainly for business use with partial private use The motor vehicle— (a) is used mainly for business use; and (b) private use of the vehicle is permitted— (i) on an employee’s rostered day off work and during their annual or statutory leave; and (ii) for travel between home and work. The motor vehicle must be a branded vehicle, unless it is owned, rented, or leased by an employer who is not a widely-held company and is carrying on a farming or agricultural business. 35 3 Mainly for business use on farmland The motor vehicle— (a) is used mainly for business use in a farming or agricultural business that is carried on mainly on farmland by an employee who is— (i) a shareholder-employee, if the employer is a company; or (ii) a beneficiary of a trust, if the employer is a trust; and (b) private use of the vehicle is permitted— (i) on a day that the employee is not required to work; and (ii) for travel between home and work. The motor vehicle must be owned or leased by an employer carrying on a farming or agricultural business. 35 4 Mainly for business use The motor vehicle– (a) is used mainly for business purposes; and (b) private use of motor vehicle is permitted only for employee’s travel between home and work. The motor vehicle must be a branded vehicle. 20 5 For business use The motor vehicle– (a) is used mainly for business purposes; and (b) private use of the vehicle is permitted only for travel between home and work if work is a project of limited duration, or requires travel to multiple work sites. The motor vehicle must be a branded vehicle. 0 6 For pool car with no private use The motor vehicle must be used exclusively for business use. 0 In the above table, travel to multiple work sites means travel between 2 or more work sites and includes travel to different locations within the same work site for the purpose of providing goods or services. 135 Schedule 20 amended (Expenditure on farming, horticultural, aquacultural, and forestry improvements) In Schedule 20, Part C, row 2, and Part E, row 2, delete the collected . 136 Schedule 21 amended (Excluded activities for research and development activities tax credits) After Schedule 21, Part A, clause 4, insert: 5 Prospecting for, exploring for, or drilling for, minerals, petroleum, natural gas, or geothermal energy. After Schedule 21, Part B, clause 4, insert: 5 Prospecting for, exploring for, or drilling for, minerals, petroleum, natural gas, or geothermal energy. Subsections (1) and (2) apply for the 2027–28 and later income years. 137 Schedule 21B amended (Expenditure or loss for research and development tax credits) Replace Schedule 21B, Part B, clause 2 with: 2 Expenditure or loss— a incurred in acquiring property that is— i depreciable property: ii property that would be depreciable in the absence of an election under section EE 8: iii property for which a deduction is allowed under subpart DT or DU and that would be depreciable property if section EE 7(j) did not apply; but b excluding expenditure or loss incurred in making the property. Replace Schedule 21B, Part B, clause 3 with: 3 Expenditure or loss,— a to the extent to which the expenditure or loss contributes to the cost of— i tangible depreciable property: ii tangible property that would be depreciable in the absence of an election under section EE 8: iii tangible property for which a deduction is allowed under subpart DT or DU and that would be depreciable property if section EE 7(j) did not apply; and b excluding amounts for employees or contractor labour in relation to core research and development activities; and c excluding expenditure or loss for property if— i the property is used solely in performing a research and development activity, or is intended to be used in the future solely in performing a research and development activity; and ii the expenditure or loss is for a core research and development activity. Repeal Schedule 21B, Part B, clause 3B. In Schedule 21B, Part B, clause 16, replace 25 million with 3 million . Subsections (1), (2), (3), and (4) apply for the 2027–28 and later income years. 138 Schedule 32 amended (Recipients of charitable or other public benefit gifts) This section amends Schedule 32. Insert, in appropriate alphabetical order,— a Africa on Fire Charitable Humanitarian Trust Board ; and b Pacific Islands Pacemaker Services (PIPS) . Insert, in appropriate alphabetical order,— a Atmabhav Charitable Trust ; and b Dream for Life Trust ; and c Kiwi K.A.R.E (Kiwi Aid & Refugee Evacuation) ; and d The Foundation for Rehabilitation of Physically Handicapped Children in Indonesia Incorporated . Delete CORSO Incorporated . Subsection (3) applies for the period commencing on 1 April 2026 and ending on 31 March 2033. 139 Schedule 35 amended (Public purpose Crown-controlled companies) In Schedule 35, insert, in appropriate alphabetical order, Ferry Holdings Limited . 140 Amendments to correct terminology relating to formulas In the headings to the provisions of the Income Tax Act 2007 listed in Part 1 of Schedule 1 , replace Definition of item with Item . In the headings to the provisions of the Income Tax Act 2007 listed in Part 2 of Schedule 1 , replace Definition of items with Items . In the provisions of the Income Tax Act 2007 listed in Part 3 of Schedule 1 , replace defined with set out . The provisions of the Income Tax Act 2007 listed in column 1 of the table in Part 4 of Schedule 1 are amended as set out in columns 2 and 3 of that table. 141 Amendments to correct terminology for macron in Māori The provisions of the Income Tax Act 2007 specified in column 1 of the table in Part 1 of Schedule 2 are amended as set out in columns 2 and 3 of that table. 142 Amendments to Goods and Services Tax Act 1985 This Part amends the Goods and Services Tax Act 1985. 143 Section 2 amended (Interpretation) This section amends section 2(1). Insert, in appropriate alphabetical order: applicable date , for a registered person and a supply, means the date that would apply to supply correction information for the supply under section 19N(7) if supply correction information were required to be provided under that section discovery period , for a registered person and an error or inaccuracy, means the taxable period in which the person— a receives supply correction information for the error or inaccuracy; or b if paragraph (a) does not apply, identifies, or otherwise becomes aware of, the error or inaccuracy recipient correction , for a supply, means,— a if taxable supply information was provided for the supply and providing supply correction information is required under section 19N, providing the supply correction information; or b if paragraph (a) does not apply, notifying the recipient of the details of the supply, its correct tax treatment, and refund or credit provided for it return error means an error that— a affects only a registered person’s own tax position; and b is not reflected in taxable supply information or supply correction information provided to another person; and c is not a supply error, a supply inaccuracy, or an amount to which section 33 or 34 applies small-value threshold , for a registered person and a taxable period, is the lower of— a $10,000; and b $1,000 or 5% of the value of the person’s total supplies, excluding GST, for the taxable period, whichever is the greater supply error , for a registered person who makes a supply, means, in relation to the supply, an error that— a affects, or could affect, the tax consequences of the supply for the supplier and the recipient; and b arises because of either or both of the following factors: i the tax position taken in the return for the supply was incorrect at the time the return was provided: ii taxable supply information or supply correction information for the supply was incorrect supply inaccuracy , for a registered person who makes a supply, means an inaccuracy in relation to the supply that arises because the tax treatment of the supply was correct at the time the supply was made but is no longer correct because, after the supply is made, an event or agreement affecting the supply occurs that changes the tax treatment of the supply under this Act, including— a the cancellation of the supply, in whole or in part: b the return, to the supplier, of all or part of the supply: c a refund, credit, or other adjustment of consideration for the supply: d the nature of the supply of the goods or services being fundamentally varied or altered tax effect , for a registered person and a taxable period, means the total discrepancy in tax payable that results from all the return errors, supply errors, and amounts to which section 33(5) applies for the period In the definitions of consideration , donated goods and services , and unconditional gift , replace non-profit body with not-for-profit body in each place. Replace the definition of hire purchase agreement with: hire purchase agreement — a has the same meaning as in section YA 1 of the Income Tax Act 2007, excluding paragraph (f) of that definition; and b does not include an agreement to the extent to which the property that is the subject of the agreement is real property In the definition of local authority , paragraph (b)(ix), replace Maori with Māori . Replace the definition of non-profit body with: not-for-profit body means any society, association, or organisation,— a whether incorporated or not, that— i is carried on other than for the purposes of profit or gain to any proprietor, member, or shareholder; and ii is, by the terms of its constitution, rules, or other document constituting or governing the activities of that society, association, or organisation, prohibited from making any distribution, whether by way of money, property, or otherwise howsoever, to any such proprietor, member, or shareholder; or b that is incorporated under the Incorporated Societies Act 2022 Insert, in appropriate alphabetical order: residential premises is defined in section 11A for the purposes of that section Subsection (7) applies to supplies made on or after 1 April 2027. 144 Section 2A amended (Meaning of associated persons) In section 2A(1)(f), (g), and (h), replace non-profit body with not-for-profit body in each place. 145 Section 3 amended (Meaning of term financial services) In section 3(2), in the definition of participatory security , after Income Tax Act 2007) , insert and an interest in an unincorporated body . 146 Section 3A amended (Meaning of input tax) Replace section 3A(3C) with: 3C For goods or services to which section 20BA applies, if, before becoming a registered person, the person acquired the goods or services from an associated person in a supply charged with tax under section 8(1), the amount of input tax must not be more than the amount accounted for as output tax by the supplier of the goods or services. 147 Section 5 amended (Meaning of term supply) Replace section 5(23)(a) with: a the supplier has treated a taxable supply of goods as subject to section 11(1)(mb); and 148 Section 5B amended (Supply of certain imported goods and services) In section 5B, replace 25AA with 38 . 149 Section 8 amended (Imposition of goods and services tax on supply) After section 8(4G), insert: 4H For the purposes of this section and the definition of resident in section 2(1), a supplier is not treated as having a fixed or permanent place in New Zealand in relation to the making of supplies of goods and services to a registered person for the purposes of the registered person carrying on their taxable activity, if— a the supplier has access to, and the use of, a place in New Zealand made available by the registered person for making those supplies; and b the supplier’s right of access to, and the use of, that place is limited to the access and use necessary for making those supplies; and c the supplier does not have any other fixed or permanent place in New Zealand relating to the making of those supplies. 150 Section 11 amended (Zero-rating of goods) In section 11(8D)(d), replace non-profit body with not-for-profit body . 151 Section 11A amended (Zero-rating of services) After section 11A(1)(x), insert: y the services are a supply of electricity by a person to an electricity retailer, and 1 or more of the following applies: i the electricity is generated at residential premises: ii the supply is made through an installation control point that is associated with residential premises, unless the retailer knows that the installation control point is not associated with residential premises. After section 11A(3B), insert: 3C For the purposes of this section, residential premises means premises configured as a residence or abode, whether or not they are occupied as a residence or abode. Subsections (1) and (2) apply to supplies made on or after 1 April 2027. 152 Section 14 amended (Exempt supplies) In section 14(1)(b), replace non-profit body with not-for-profit body . 153 Section 15C amended (Changes in taxable periods) After section 15C(2B), insert: 2C If a person to whom subsection (2) applies does not change their taxable period as required by that subsection, the Commissioner may change the person’s taxable period to a 2-month period unless subsection (4) applies. 154 Section 16 amended (Taxable period returns) In section 16(3), replace non-profit body with not-for-profit body . 155 Section 19A amended (Requirements for accounting on payments basis) In section 19A(1)(a)(iii), replace non-profit body with not-for-profit body . 156 Section 19D amended (Invoice basis for supplies over $225,000) In section 19D(2B), replace non-profit body with not-for-profit body . 157 Section 20 amended (Calculation of tax payable) Replace section 20(2)(b) with: b a tax invoice is not required to be issued under section 24(5) or (6), or a debit note or credit note is not required to be issued under section 25 and notice identifying the supply and the amount of the adjustment has been given to the recipient before the date specified in section 25(3)(f) that would be applicable if a credit note had been required; or Replace section 20(2)(b) with: b for a supply that a registered person intends to claim a deduction for under section 20(3) because of an adjustment made under section 25(2)(b) to correct an inaccuracy,— i have issued a credit note if required by section 25; or ii if a credit note is not required by section 25, have given notice to the recipient that identifies the supply and the amount of the adjustment before the date specified in section 25(3)(f) that would be applicable if a credit note had been required; and Replace section 20(2)(b) with: b for a supply that a registered person intends to claim a deduction for under section 20(3) because of an adjustment made under section 25(2)(b) to correct an inaccuracy,— i have provided supply correction information if required by section 19N; or ii if supply correction information is not required by section 19N because taxable supply information was not previously provided, have given notice to the recipient that identifies the supply and the amount of the adjustment before the date specified in section 19N(7) that would be applicable if supply correction information was required and the notice was supply correction information; and Replace section 20(2)(b) with: b for a supply that a registered person intends to claim a deduction for under section 20(3) because of an adjustment made under section 30(2) or 31(2)(b) to correct an error or inaccuracy, have provided a recipient correction by the applicable date; and In section 20(3)(a)(iii), replace 25(2)(b), 25(5), 25AA(2)(b) or 25AA(3)(b) with 28(2)(b), 30(2), 31(2)(b), 32(3)(b), 33(2), 34(a), 38(2)(b) or (3)(b), or 39(2)(b) . In section 20(3)(b)(iv), replace 25(2)(b), 25(5), 25AA(2)(b) or 25AA(3)(b) with 28(2)(b), 30(2), 31(2)(b), 32(3)(b), 33(2), 34(a), 38(2)(b) or (3)(b), or 39(2)(b) . Before section 20(3)(f), insert: eb despite paragraphs (a) and (b), an amount of input tax determined under section 20BA to the extent to which payment is made for those goods or services; and In section 20(3), delete the proviso. Replace section 20(3I)(a) with: a full input tax deduction — i is the total amount of input tax on the supply: ii for goods or services to which section 20BA applies, is the amount of the input tax determined under section 20BA : In section 20(3K) and (3KB), replace non-profit body with not-for-profit body . In section 20(4)(b),— a in subparagraph (i), replace 25(2)(a), 25(4) with 28(2)(a), 29(2)(a), 31(2)(a), 32(3)(a), 33(5)(a), 34(b), 37(2), or 39(2)(a) ; and b in subparagraph (ib), replace 25AA(2)(a) or 25AA(3)(a) with 38(2)(a) or (3)(a) . 158 Section 20A amended (Goods and services tax incurred relating to determination of liability to tax) Replace section 20A(4) with: 4 Any amount received by a registered person at any time, whether by way of reimbursement, award of a court, recovery, or otherwise, in respect of goods and services deemed under this section to be acquired by the registered person with the intention of using the goods and services for making taxable supplies, is treated as consideration for a supply made by the registered person in the course of a taxable activity in the taxable period in which it is received. 159 New sections 20BA to 20BAC inserted After section 20A, insert: 20BA Goods or services acquired before registration 1 This section applies when— a a person acquires goods or services before becoming a registered person; and b on or after becoming a registered person, the person starts using the goods or services for making taxable supplies. 2 This section also applies when— a a person acquired goods or services as a registered person; and b the person ceased to be a registered person; and c the person accounted for output tax on a supply that section 5(3) treated the person as making on ceasing to be a registered person; and d the person subsequently becomes a registered person. 3 The goods or services are treated, for the purposes of this Act, as acquired by the person when the person starts using them for making taxable supplies. 4 Unless subsection (5) applies, the amount of input tax for the goods and services is the lesser of— a the amount that would be input tax under section 3A if the person had been a registered person at the time the goods or services were originally acquired; and b the tax fraction of the open market value of the goods or services at the time they start being used to make taxable supplies. 5 The amount of input tax for the goods or services is,— a for goods or services originally acquired no more than 12 months before they start being used for making taxable supplies, the amount referred to in subsection (4)(a) ; or b for services consisting of an unexpired right or entitlement that were charged with tax under section 8(1) when they were originally acquired, the tax fraction of the purchase price multiplied by the proportion of the period remaining under the right or entitlement when the services start being used for making taxable supplies; or c despite paragraphs (a) and (b) , for goods or services to which subsection (2) applies, the lesser of— i the tax fraction of the open market value of the goods or services at the time they start being used to make taxable supplies under the person's subsequent registration; and ii the amount of output tax the person previously accounted for. 6 For the purposes of this section, the tax fraction that applies is the tax fraction that applied when the goods or services were originally acquired. 20BAB Goods or services acquired before incorporation 1 This section applies when— a before a company is incorporated, a member, officer, or employee of the company acquires goods or services for or on behalf of the company, or in connection with the incorporation of the company; and b the goods or services are acquired for the purpose of a taxable activity to be carried on by the company; and c before the company reimburses the member, officer, or employee, the goods or services are not used for any other purpose; and d after the company is incorporated, the company reimburses the member, officer, or employee in full for the goods or services; and e on or after becoming a registered person, the company starts using the goods or services for making taxable supplies. 2 Section 20BA applies as if— a the company had acquired the goods or services before becoming a registered person; and b references in that section to the person were references to the company. 20BAC Goods or services later used by partnership 1 This section applies when— a before becoming a registered person, a person acquires goods or services; and b at the time of registration or at a later time, a partnership of which the person is a member starts using the goods or services for making taxable supplies. 2 Section 20BA applies as if— a the partnership had acquired the goods or services before becoming a registered person; and b references in that section to the person were references to the partnership. 160 Section 21B repealed (Adjustments when person or partnership becomes registered after acquiring goods and services) Repeal section 21B. 161 Section 21D amended (Calculating amount of adjustment) Replace section 21D(2)(a) with: a full input tax deduction — i is the total amount of input tax on the supply, including any nominal GST component chargeable under section 20(3J)(a)(i); and ii for goods or services to which section 20BA applies, is the amount of input tax determined under section 20BA : 162 Section 21FB amended (Treatment when percentage of taxable use permanently changes) Replace section 21FB(3)(a) with: a full input tax deduction — i is the total amount of input tax on the supply, including any nominal GST component chargeable under section 20(3J)(a)(i); and ii for goods or services to which section 20BA applies, is the amount of input tax determined under section 20BA : 163 Section 22 repealed (Goods and services acquired before incorporation) Repeal section 22. 164 Replace section 25 (Adjustments for inaccuracies) Replace section 25 with: 25 Corrections for errors and inaccuracies The rules for correcting errors and inaccuracies under this Act are set out in subpart 3A . 165 Repeal section 25AAA (Corrections of inaccuracies by marketplace operators) Repeal section 25AAA. 166 Repeal section 25AA (Consequences of change in contract for imported goods and services) Repeal section 25AA. 167 Repeal section 25AB (Consequences of change in contract for secondhand goods) Repeal section 25AB. 168 New subpart 3A inserted (Correcting errors and inaccuracies) After section 26B, insert: 3A Correcting errors and inaccuracies 27 Outline of this subpart 1 This subpart sets out the rules for correcting errors and inaccuracies in relation to supplies of goods and services. 2 The rules provide for— a return errors, which affect only a registered person’s own tax position ( see section 28 ): b supply errors, which affect, or could affect, the tax consequences for both the supplier and the recipient and arise because of an incorrect tax position taken in the return for the supply or incorrect taxable supply information or supply correction information ( see sections 29 and 30 ): c supply inaccuracies, which arise because the tax treatment was correct at the time of the supply but is no longer correct ( see section 31 ): d Commissioner-identified errors, about which the Commissioner notifies the registered person ( see section 32 ): e recipient-led corrections, which arise when an incorrect amount of input tax is deducted for a supply and is either identified by the recipient ( see section 33 ) or the recipient receives supply correction information ( see section 34 ). 3 The rules also provide in which circumstances an error or inaccuracy for a taxable period must be corrected by— a reflecting the correct tax treatment in the return for a later taxable period; or b providing a return for the taxable period that reflects the correct tax treatment; or c requesting an amendment to the original assessment for the taxable period. 4 Several general rules are also set out that provide for the following: a correcting an error or inaccuracy identified before a return is provided ( see section 35 ): b when an assessment may be amended to correct both output tax and input tax ( see section 36 ): c when a recipient correction is required before an assessment may be amended ( see section 36B ): d allowing the Commissioner to amend an assessment in exceptional circumstances ( see section 36C ): e preventing an error or inaccuracy from being corrected in a later return if the main purpose of using that correction method is to delay the payment of tax ( see section 36D ): f the effect on an earlier assessment of a correction made in a later return for the purposes of Parts 4A, 6, 7, 8A, and 9 of the Tax Administration Act 1994 ( see section 36E ). 5 Special rules for specific circumstances are also set out as follows: a corrections for certain secondhand goods deductions ( see section 37 ): b corrections for deemed supplies of imported goods and services ( see section 38 ): c corrections by marketplace operators for flat-rate credit inaccuracies ( see section 39 ): d determining consideration is not incorrect if part has been rebated to Pharmac ( see section 40 ). Return errors 28 Return errors 1 This section applies when a registered person identifies a return error for a taxable period. 2 If the registered person’s tax effect for the taxable period is at or below the small-value threshold, they must correct the error in the return for the discovery period by,— a if the amount of output tax accounted for in the taxable period was less than the correct amount of output tax for that period, treating the difference as tax charged on a taxable supply made by the registered person and attributable to the discovery period; or b if the amount of output tax accounted for in the taxable period exceeds the correct amount of output tax for that period, deducting the excess under section 20(3). 3 If the registered person’s tax effect for the taxable period is above the small-value threshold, the registered person must request an amendment to the original assessment for the taxable period to correct the error. Supply errors and inaccuracies 29 Supply errors that increase output tax 1 This section applies when a registered person identifies a supply error for a taxable period and the effect of the error is that an amount of output tax that is less than the correct amount of output tax for the taxable period has been accounted for. 2 If the registered person provided a return for the taxable period and the registered person’s tax effect for the taxable period is— a at or below the small-value threshold, the registered person must correct the error in the return for the discovery period by treating the difference between the correct amount of output tax for the taxable period and the amount of output tax previously accounted for as tax charged on a taxable supply made by the registered person and attributable to the discovery period; or b above the small-value threshold, the registered person must request an amendment of the original assessment for the taxable period to correct the error. 3 If no return was provided for the taxable period, the registered person must provide a return for the taxable period that reflects the correct tax treatment. 30 Other supply errors 1 This section applies when— a a registered person identifies a supply error; and b the effect of the error is that— i the amount of output tax previously accounted for by the registered person for a supply was more than the correct amount of output tax for the supply; or ii the tax treatment of a supply is incorrect but the amount of output tax previously accounted for remains correct; and c the registered person provides a recipient correction for the supply by the applicable date. 2 If subsection (1)(b)(i) applies, the registered person must correct the error by making a deduction under section 20(3) of the amount by which the output tax previously accounted for exceeds the correct amount of output tax either— a in the return for the discovery period; or b if the recipient correction is not provided until a later taxable period, in the return for that later taxable period. 3 If subsection (1)(b)(ii) applies, the registered person is not required to make any further correction other than the recipient correction required by subsection (1)(c) . 31 Supply inaccuracies 1 This section applies when a registered person identifies a supply inaccuracy for a taxable period. 2 The registered person must correct the inaccuracy in the return for the discovery period by,— a if the amount of output tax accounted for in the taxable period was less than the correct amount of output tax for that period, treating the difference as tax charged on a taxable supply made by the registered person and attributable to the discovery period; or b if the amount of output tax accounted for in the taxable period exceeds the correct amount of output tax for that period and the registered person provides a recipient correction for the supply by the applicable date, deducting the excess under section 20(3). Other corrections 32 Errors identified by Commissioner 1 This section applies when the Commissioner notifies a registered person of a return error or a supply error for a taxable period. 2 The registered person must correct the error— a in the next return due after the Commissioner notifies the registered person of the error if— i a return was provided for the taxable period; and ii the registered person’s tax effect for the taxable period is at or below the small-value threshold; or b unless section 35(2) applies, by providing a return for the taxable period that reflects the correct tax treatment if no return was provided; or c by requesting an amendment to the original assessment for the taxable period if neither paragraph (a) nor (b) apply. 3 For the purposes of subsection (2)(a) , the registered person corrects the error in the next return due by,— a if the correct amount of output tax exceeds the amount of output tax previously accounted for, treating the difference as tax charged on a taxable supply made by the registered person and attributable to the period of the return; or b if the correct amount of output tax was less than the amount of output tax previously accounted for, deducting the excess under section 20(3). Recipient-led corrections 33 Recipient-initiated corrections of input tax deducted 1 This section applies if a registered person identifies, or otherwise becomes aware, that the amount of input tax deducted by the person for a supply in a taxable period (the earlier taxable period ) is incorrect and section 34 does not apply. 2 If the correct amount of input tax for the supply exceeds the amount deducted, the difference (the under-deducted amount ) must be deducted under section 20(3) in the return for the discovery period if either— a not more than 4 years have passed since the end of the taxable period in which the return for the earlier taxable period was provided; or b subsection (3) applies. 3 For the purposes of subsection (2)(b) , this subsection applies if the failure to deduct the under-deducted amount in the earlier taxable period was because of 1 or more of the following factors: a the registered person could not obtain taxable supply information: b a dispute over the proper amount of the payment for the supply to which the under-deducted amount relates: c the registered person mistakenly understood that the supply to which the under-deducted amount relates was not a taxable supply: d a clear mistake or simple oversight of the registered person. 4 If subsection (2) does not apply,— a the under-deducted amount must not be deducted by the registered person; and b unless section 36 applies, the Commissioner may not amend an assessment under section 113 of the Tax Administration Act 1994 to allow a deduction for the under-deducted amount. 5 If the amount of input tax deducted by the registered person exceeds the correct amount of input tax for the supply, either— a the excess amount is treated as tax charged on a taxable supply made by the registered person and attributable to the discovery period if the registered person’s tax effect for the earlier taxable period is at or below the small-value threshold; or b the registered person must request an amendment to the original assessment for the earlier taxable period to correct the error. 34 Corrections to input tax when supply correction information received A registered person who receives supply correction information in a taxable period for a supply must, in the return for that taxable period,— a if the correct amount of input tax for the supply exceeds the amount deducted by the person, deduct the difference under section 20(3); or b if the amount deducted exceeds the correct amount of input tax, treat the excess as tax charged on a taxable supply made by the registered person and attributable to that taxable period. General rules for correcting errors and inaccuracies 35 Errors or inaccuracies identified before return provided 1 If a registered person identifies, or otherwise becomes aware of, an error or inaccuracy for a supply for a taxable period before the return for that period is provided, the registered person must provide the return for that taxable period based on the correct tax treatment of that supply. 2 Subsection (1) does not apply if the effect of the error or inaccuracy is that the correct amount of output tax for the supply is less than the amount the registered person charged to the recipient of the supply and the registered person does not provide a recipient correction before the return is provided. 36 Amendments of assessments for output tax and input tax 1 This section applies when— a a registered person identifies an error or inaccuracy; and b the error or inaccuracy affects the amount of tax payable by the registered person for a taxable period because— i output tax that should have been accounted for in the taxable period was not accounted for; and ii input tax that should have been deducted for the taxable period was not deducted, in whole or in part, in that period; and iii in the absence of this section, section 33 would either require the registered person to deduct the amount of input tax in a later taxable period or prohibit the deduction of the input tax; and c the registered person asks the Commissioner to amend the original assessment for the taxable period under section 113 of the Tax Administration Act 1994. 2 The Commissioner may amend the assessment for the taxable period to account for both the output tax and the input tax. 3 If the Commissioner amends an assessment under section 113 of that Act in accordance with this section, the other provisions of this subpart do not apply to require any part of the error or inaccuracy to be corrected in a return for a later taxable period. 36B Recipient correction required to amend assessment The Commissioner must not amend an assessment under section 113 of the Tax Administration Act 1994 to correct a supply error or supply inaccuracy by decreasing the amount of output tax payable for a supply unless the Commissioner is satisfied the registered person has provided a recipient correction for the supply by the applicable date. 36C Exceptional circumstances 1 This section applies if the Commissioner is satisfied that— a because of exceptional circumstances, the correction methods otherwise provided by this subpart would not result in the correct tax consequences under this Act; and b amendment of an assessment under section 113 of the Tax Administration Act 1994 is necessary to give effect to those consequences. 2 Subject to section 36B , but despite any other provision in this subpart, the Commissioner may amend an assessment under section 113 of that Act to the extent necessary to give effect to those consequences. 3 Despite subsection (2) , the Commissioner must not amend an assessment under section 113 of that Act to circumvent any time limit applying under this Act or the Tax Administration Act 1994 for amending assessments or making refunds. 36D No correction in later return if purpose delaying payment of tax 1 This section applies when,— a under this subpart, a registered person corrects an error or inaccuracy by including an amount in a return for a taxable period that occurs after the taxable period (the error period ) to which the error or inaccuracy relates; and b the Commissioner is satisfied that the main purpose of the registered person in including the amount in that return is to delay the payment of tax. 2 Despite the provisions of this subpart, the amount included in the return for the taxable period is not treated as correcting the error or inaccuracy. 3 The registered person must— a request an amendment to the original assessment for the error period to correct the error or inaccuracy; or b if no return was provided for the error period, unless section 35(2) applies, provide a return for that period that reflects the correct tax treatment. 36E Effect of corrections in returns on earlier assessments If a registered person corrects an error or inaccuracy by including an amount in a return in accordance with this subpart, the assessment for the taxable period to which the error or inaccuracy relates is treated as correct to the extent of the correction for the purposes of Parts 4A, 6, 7, 8A, and 9 of the Tax Administration Act 1994. Special cases 37 Corrections for certain secondhand goods deductions 1 Despite the other provisions in this subpart, this section applies to a supply of secondhand goods to a registered person for which the registered person returns input tax determined under section 3A(3) if— a the supply is affected by 1 or more of— i a cancellation of the supply: ii a return, to the supplier, of all or part of the supply: iii an incorrect description of the supply: iv an incorrect rate of tax: v an incorrect amount of tax charged: vi a change to the previously agreed consideration for the supply; and b the registered person returns input tax on the supply as a deduction from the amount of output tax for a taxable period in the calculation of tax payable by the registered person for the taxable period; and c as a result of the event referred to in paragraph (a) , the amount of input tax on the supply returned by the registered person exceeds the correct amount of input tax for the supply; and d the supplier does not provide taxable supply information or supply correction information in relation to the supply. 2 An amount equal to the amount of the excess referred to in subsection (1)(c) is treated as being tax charged in relation to a taxable supply made by the registered person attributable to the discovery period. 38 Corrections for deemed supplies of imported goods and services 1 Despite the other provisions in this subpart, this section applies in relation to a supply of goods or services by a non-resident that is treated by sections 5B and 8(4B) as being made in New Zealand by the recipient of the supply if— a any 1 of the following is satisfied: i the supply of goods or services has been cancelled: ii the nature of the supply of goods or services has been fundamentally varied or altered: iii the previously agreed consideration for the supply of goods or services has been altered, whether due to the offer of a discount or otherwise: iv the goods or services or part of the goods or services supplied have been returned to the non-resident: v the supplier has provided the recipient with taxable supply information under section 19K(8) or (9); and b an inaccuracy arises because the return made for the taxable period for which output tax on the supply is attributable is no longer correct. 2 A person who has accounted for an incorrect amount of output tax must correct the inaccuracy in the return for the discovery period by,— a if the correct amount of output tax for the supply is more than the output tax accounted for by the person, treating the amount of the excess as tax charged for a taxable supply made by the person and attributable to the discovery period; or b if the correct amount of output tax for the supply is less than the output tax accounted for by the person, deducting the amount of the deficiency under section 20(3). 3 A person who has accounted for an incorrect amount of input tax must correct the inaccuracy in the return for the discovery period by,— a if the correct amount of input tax for the supply is less than the amount of the input tax deducted by the person, treating the amount of the deficiency as tax charged for a taxable supply made by the person and attributable to the discovery period; or b if the correct amount of input tax for the supply is more than the amount of input tax deducted by the person, deducting the amount of the excess under section 20(3). 39 Corrections by marketplace operators for flat-rate credit inaccuracies 1 Despite the other provisions of this subpart, this section applies when an operator of an electronic marketplace— a is required to deduct input tax for a flat-rate credit to pass on under section 20(3)(de) to an underlying supplier; and b discovers, after having deducted the amount, that the amount is incorrect. 2 The operator of the electronic marketplace must correct the inaccuracy in the return for the discovery period by,— a if the amount of input tax deducted is more than the correct amount, treating the amount of the excess as an amount of tax charged for a taxable supply by the operator and attributable to the discovery period; or b if the amount of input tax deducted is less than the correct amount, deducting the amount of the deficiency under section 20(3). 3 For the purposes of subsection (2)(a) , if the requirement to pass on the flat-rate credit to the underlying supplier has been met, the amount of the excess may be offset in relation to another amount of flat-rate credit required to be passed on. 4 The operator of the electronic marketplace must pass on any amount of the deficiency referred to in subsection (2)(b) to the underlying supplier under section 8C(3)(b)(ii). 40 Consideration for supply when rebated to Pharmac For the purposes of determining if an error or an inaccuracy needs correction under this subpart, the previously agreed consideration for the supply of a pharmaceutical is not an incorrect amount of consideration if part of the consideration for the supply has been rebated to Pharmac (acting on its own account or as an agent for a public authority) under a Pharmac agreement. Subsection (1) applies for errors or inaccuracies corrected on or after the day after the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 receives the Royal assent. 169 Section 43 amended (Deduction of tax from payment due to defaulters) Replace section 43(5) with: 5 When the Commissioner issues a notice to a person under subsection (2) or (4), the Commissioner must notify the registered person or liable person of the following: a that a notice has been issued to the person; and b the information in the notice that relates to the registered person or liable person; and c that a deduction will be made from an amount payable in relation to the registered person or liable person. In section 43(5B), replace send a copy of the notice to with notify . 170 Section 51 amended (Persons making supplies in course of taxable activity to be registered) In section 51(1D), after who is , insert a non-resident or . In section 51(5), replace non-profit body with not-for-profit body in each place. 171 Section 55 amended (GST groups) Replace section 55(1AE)(b) with: b if the person is a member of the GST group, and except if another provision requires otherwise,— i may be disregarded for the purposes of calculating the tax payable by the GST group for a taxable period; or ii if it is not disregarded under subparagraph (i) , is a supply made and received by the representative member as a registered person. In section 55(1AO)(b)(i), replace 19J, 19L, and 25 with 19J and 19L and subpart 3A . In section 55(4), replace from the beginning of such taxable period as is determined by the Commissioner with from such date as is determined by the Commissioner . Repeal section 55(4AA). Subsection (1) applies for taxable periods starting on or after 30 March 2022. Subsections (3) and (4) apply for taxable periods beginning on or after the day after the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 receives the Royal assent. 172 Section 57B amended (Flow-through joint ventures) Replace section 57B(5) with: 5 Goods or services that the ordinary joint venture acquired and that are being used by a member of the flow-through joint venture for making taxable supplies are treated, for the purposes of section 20BA and sections 21 to 21H, as if the member had acquired the goods or services. 173 Section 60CB amended (Listing intermediaries and supply of listed services) In section 60CB(5), replace 25AAA, 60H with 39 , and 60H of this Act . In section 60CB(7), replace 25AAA with 39 and 85E with and 85E of this Act . 174 Section 75 amended (Keeping of records) In section 75(3BA)(a), (3F)(a), and (6)(a)(i), replace Maori with Māori . 175 Section 78AA amended (Exceptions to effect of increase of tax) In section 78AA(12), replace Despite section 25(3) and (3C), and section 143A(1)(f) of the Tax Administration Act 1994, subsection with Subsection . 176 Section 78BA amended (Adjustments to tax payable in relation to supply correction information following change in rate of tax) In section 78BA(1)(c), replace (in accordance with section 25) with under section 19N . 177 Section 81B amended (Limitation on amending assessments for legislative charges) In section 81B, replace section 25 with subpart 3A . 178 Section 88 amended (Valuation: non-profit body making certain supplies, deregistering, or acquiring certain assets of non-profit body) In the heading to section 88, replace non-profit body with not-for-profit body in each place. In section 88(1)(a), replace non-profit body with not-for-profit body . In section 88(6), replace non-profit body with not-for-profit body in each place. 179 New section 95 inserted (Correction of errors and inaccuracies made before insertion of subpart 3A) After section 94, insert: 95 Correction of errors and inaccuracies made before insertion of subpart 3A 1 This section applies for the correction of an error or inaccuracy made on or after 30 March 2022 when the correction is made under section 25 as in force before the date on which the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 came into force. 2 For the purposes of section 36E , the correction is treated as if it were made in accordance with subpart 3A . Subsection (1) applies to corrections of errors or inaccuracies made on or after 30 March 2022. 180 Amendments to Tax Administration Act 1994 This Part amends the Tax Administration Act 1994. 181 Section 3 amended (Interpretation) This section amends section 3(1). Insert, in appropriate alphabetical order: bookkeeper means a person who— a is eligible under section 124ZK(2) to act as a bookkeeper; and b is approved by the Commissioner as a bookkeeper; and c does not later have their approval as a bookkeeper disallowed by the Commissioner In the definition of Commissioner’s official opinion , paragraph (a)(ii), delete notifying the taxpayer . Insert, in appropriate alphabetical order: digital services provider means a person who provides digital services that enable, with a user's consent, 1 or both of the following: a the communication of information to the Commissioner: b the receipt of information from the Commissioner Repeal the definition of extended model reporting standard for digital platforms . Repeal the definition of provider of digital services . In the definition of reporting platform operator , delete 185T, and or the extended model reporting standard for digital platforms, as applicable . 182 New section 7B inserted (Automated electronic systems) After section 7A, insert: 7B Automated electronic systems 1 The Commissioner may approve the use of an automated electronic system to make any decision or assessment, exercise any power, carry out any function, comply with any duty, or take any other related action that the Commissioner is authorised or required to make, exercise, carry out, comply with, or take under an Inland Revenue Act. 2 The Commissioner may approve the use of an automated electronic system only if the Commissioner is satisfied the system meets the approved standard for the Commissioner’s use of automated electronic systems ( see subsections (3) to (5) ). 3 The Commissioner must establish an approved standard for the Commissioner’s use of automated electronic systems. 4 The standard, and any amendment, revocation, or replacement of the standard, must be— a approved by the Commissioner, in consultation with— i the Privacy Commissioner appointed under the Privacy Act 2020; and ii the Human Rights Commission continued by section 4 of the Human Rights Act 1993; and b reviewed at least once every 3 years; and c published by the Commissioner. 5 The standard must include provisions that address the following topics: a accuracy and reliability: b compliance and assurance: c efficiency and effectiveness: d human oversight: e legal, privacy, and policy considerations: f neutrality and non-discrimination: g transparency and accountability. 6 A decision or assessment made, power exercised, function carried out, duty complied with, or related action taken using an automated electronic system under this section— a is treated as if it were made, exercised, carried out, complied with, or taken by a person authorised or required under an Inland Revenue Act to make the decision, exercise the power, carry out the function, comply with the duty, or take the action; and b is not invalid only because it is made, exercised, carried out, complied with, or taken by the system. 183 Section 22 amended (Keeping of business and other records) In section 22(2)(fe), replace sections 185S and 185T apply with section 185S applies . In section 22(2)(lf), delete and the extended model reporting standard for digital platforms, as applicable . 184 Section 25E amended (Who must provide investment income information to Commissioner) After section 25E(1)(a), insert: ab a person who pays interest to a person who has been granted RWT-exempt status under section RE 27 of the Income Tax Act 2007: 185 Section 25F amended (Information on interest) In section 25F(1), after (1)(a) , insert , (ab) , . 186 Section 32M amended (Persons with approved issuer status) In section 32M(5), after before the date of the revocation , insert unless the security has been deregistered under clause 249 of Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . 187 Section 41A amended (Returns in relation to charitable or other public benefit gifts) In section 41A(11), after that Act , insert , except when an application for a redirection of a refund has been made under section 41BAB . 188 New sections 41BA and 41BAB inserted After section 41A, insert: 41BA Returns for in-year charitable or other public benefit gifts 1 A person who has an in-year tax credit under section LD 3A of the Income Tax Act 2007 may apply for a refund during a tax year. 2 An application under subsection (1) must be made in the manner required by the Commissioner and be accompanied by any information the Commissioner requires, including the amount of a charitable or other public benefit gift to which section LD 3A applies. 3 For the purposes of section 108(1),— a the payment of a refund under this section is treated as an assessment; and b the 4-year period starts at the end of the tax year in which the person applies for the refund. 4 The Commissioner must not refund the amount of an in-year tax credit unless the requirements of section LD 3A are met. 5 When the Commissioner has considered an application, the Commissioner must notify the person of the amount of the tax credit under section LD 3A and of the amount of refund allowed. 6 A tax credit may not be refunded to an absentee, a company, a public authority, a Māori authority, an unincorporated body, or a trustee liable for income tax under sections HC 16, HC 32, or HZ 2 of that Act, except when application for a redirection of a refund has been made under section 41BAB. 7 A refund paid under subsection (1) must be paid as if it were tax paid in excess and is recoverable as an excess tax credit under section 142D to the extent to which— a it is more than the correct amount of refund; or b the charitable or other public benefit gift to which the refund relates has subsequently been returned to the person who made the gift or an associated person. 8 Despite subsection (3) , the time bar in section 108 does not apply to a refund to which subsection (7)(b) applies. 41BAB Redirection of tax credits for charitable or other public benefit gifts 1 A person who makes a charitable or other public benefit gift to a donee organisation, and who has a tax credit under section LD 1 or LD 3A of the Income Tax Act 2007, may request that the Commissioner redirect to the organisation a refund to which section 41A or 41BA applies. 2 In an application for a redirection of a refund, the person must— a apply and meet the requirements for a refund under section 41A or 41BA , as applicable; and b nominate the donee organisation that received the charitable or other public benefit gift to receive the refund instead of the person. 3 Payment to the donee organisation discharges the Commissioner's obligation to pay the refund to the person who has the tax credit. 189 Section 42 amended (Returns by joint venturers, partners, and partnerships) After section 42(3)(c), insert: cb a partner who makes an election under paragraph (c) may include in the partner’s research and development supplementary return under section 33E the partner's share of the partnership's eligible research and development expenditure as if the partner also had that non-standard balance date: 190 New section 43C inserted (Certain not-for-profit organisations not required to file returns) After section 43B, insert: 43C Certain not-for-profit organisations not required to file returns 1 A not-for-profit organisation that has net income of $10,000 or less for a tax year is not required to file a return of income for the tax year unless required by the Commissioner to do so. 2 A not-for-profit organisation that has net income of more than $10,000 for a tax year must file a return of income for the tax year. Subsection (1) applies for the 2027–28 and later income years. 191 Section 68CB amended (Research and development tax credits: general approval) After section 68CB(2B), insert: 2C Despite subsection (2B), if a partner has made an election under section 42(3)(cb) and applies for approval in relation to research and development activities conducted through the partnership, the reference in subsection (2B) to the end of the first income year is a reference to the later of— a the end of the first income year of the partner; and b the end of the corresponding income year of the partnership. After section 68CB(7), insert: 7BA Despite subsection (7)(c), if a partner has made an election under section 42(3)(cb) and applies for a variation in relation to research and development activities conducted through the partnership, the reference in subsection (7)(c) to the end of the relevant income year is a reference to the later of— a the end of the relevant income year of the partner; and b the end of the corresponding income year of the partnership. 192 New sections 68CG and 68CH inserted After section 68CF, insert: 68CG Approval for in-year R&D payments 1 A person may apply to the Commissioner for approval to receive in-year R&D payments for an income year if section LY 3 of the Income Tax Act 2007 applies to the person for the income year. 2 The application must— a be made in the prescribed form; and b specify the claim period; and c include any information required by the Commissioner. 3 A person who chooses to apply under subsection (1) must apply by the earlier of— a the due date for their return of income under section 37; and b the date that is 6 months after the end of the income year. 4 In deciding whether to approve a person under this section, the Commissioner may have regard to any matter that the Commissioner considers relevant. 5 The Commissioner may approve an amount of in-year R&D payments that is less than the amount applied for. 6 In deciding the amount to approve under subsection (5) , the Commissioner may have regard to any matter that the Commissioner considers relevant. 7 An approval granted under this section remains in force until revoked by the Commissioner. 8 The Commissioner may revoke an approval if— a section LY 3 of the Income Tax Act 2007 no longer applies to the person: b having regard to any matter that the Commissioner considers relevant, the Commissioner considers that the approval should be revoked. After section 68CG, as inserted by subsection (1) , insert: 68CH Commissioner may extend or permit amendment of RDTI filings 1 The Commissioner may, on application by a person, extend a time limit applying under any of sections 33E, 68CB, 68CC, and 113E(1)(b). 2 The Commissioner may permit a person to amend information provided under any of those sections after the time otherwise allowed under this Act. 3 The Commissioner may exercise a discretion under subsection (1) or (2) only if satisfied that— a the person had taken reasonable steps to prepare the relevant application, supplementary return, or amendment for the relevant tax year; and b the failure to comply with the relevant time limit, or the need for the amendment, arose because of 1 or both of the following: i a genuine mistake or oversight: ii an event or circumstance outside the person’s control. c allowing the filing or amendment would not undermine the integrity of the research and development tax credit regime. 4 In deciding whether to exercise a discretion under this section, the Commissioner may consider any matters the Commissioner considers relevant, including— a the explanation and supporting evidence provided by the person: b evidence that the person took reasonable steps to identify, document, or claim eligible research and development activities and expenditure: c the time between the relevant due date and the steps taken to rectify the failure: d the person’s history of complying with their obligations under the Inland Revenue Acts. Subsection (1) applies for the 2027–28 and later income years. 193 Section 78I amended (Pre-assessment annual information reporting requirements for purposes of applied global anti-base erosion rules) In section 78I(2)(a), (4)(a) and (7)(a), replace a member of the MNE group is required to provide a multinational top-up tax return with the applied global anti-base erosion rules apply to a constituent entity of the MNE group . 194 Section 78J amended (Annual multinational top-up tax return) Replace section 78J(1) with: 1 This section applies to a constituent entity of an MNE group if the constituent entity— a is located in New Zealand under the applied global anti-base erosion rules for a fiscal year in which the constituent entity is an entity to which the global anti-base erosion model rules apply; and b has a liability to pay multinational top-up tax for the fiscal year. After section 78J(4), insert: 5 An obligation of a constituent entity under subsection (2) may be met by another constituent entity of the MNE group that— a is located in New Zealand under the applied global anti-base erosion rules; and b has been appointed for that purpose by the members of the MNE group located in New Zealand under the applied global anti-base erosion rules. 195 New section 90C inserted (Determination on rates used in vehicle valuation amounts) After section 90B, insert: 90C Determination on rates used in vehicle valuation amounts 1 The Commissioner must review and determine the rates applying to vehicle valuation amounts in Schedule 5, Part A of the Income Tax Act 2007 once every 4 years. 2 A review undertaken under subsection (1) must take into account the most recent vehicle running-cost report published by The New Zealand Automobile Association (Incorporated) and information on national average fuel prices published by the Ministry of Business, Innovation and Employment. 3 A determination made under subsection (1) must be made— a no later than 31 March 2031 for the first determination; and b thereafter, no later than 31 March in every fourth year. 4 A determination made under subsection (1) applies to quarters starting on or after the 1 April after the determination is made. 5 A determination under this section is secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 196 Section 91AAB amended (Determinations relating to types and diminishing values of listed horticultural plants) In section 91AAB(1), replace DO 9 with DO 8 . 197 Section 91AABB repealed (Determinations relating to monetary threshold in extended model reporting standard for digital platforms) Repeal section 91AABB. 198 Section 91C amended (Taxation laws in respect of which binding rulings may be made) Repeal section 91C(1)(a). 199 Section 91CB (Binding rulings on certain matters) In section 91CB(1)(d), replace non-profit body with not-for-profit body . 200 Section 105 repealed (Assessments and determinations made by electronic means) Repeal section 105. 201 Section 108 amended (Time bar for amendment of income tax assessment) After section 108(1C)(a)(iib), insert: iic is a constituent entity of an MNE group that provides information under section 78I in relation to Article 8.1.4(a) to (e) of the global anti-base erosion model rules for a period that, for the purposes of this section, is treated as the making of an assessment when the taxpayer does not have an obligation to provide a return under section 78J: In secton 108(1C)(b), replace return or statement, with return, statement, or information, . After section 108(1E)(aa), insert: aab a filing, amendment, or assessment adjustment resulting from the exercise of the Commissioner’s discretion under section 68CH : 202 Section 113A amended (Correction of certain errors in subsequent returns) In section 113A(1),— a in the words before the paragraphs, delete for the purposes of this Act and the Goods and Services Tax Act 1985 ; and b in paragraph (a)(i), delete or goods and services tax . Replace section 113A(4)(b) with: b 2% of the person’s annual gross income. In section 113A(5), delete or goods and services tax . 203 New section 120VF inserted (Interest on excess in-year R&D payments) After section 120VE, insert: 120VF Interest on excess in-year R&D payments 1 This section applies to a person who is liable to pay tax under section LY 11(7) of the Income Tax Act 2007. 2 The person must pay interest to the Commissioner on the amount by which the person’s total in-year R&D payments for the income year exceed the person’s research and development tax credit for the income year. 3 Interest is payable from the day after an in-year R&D payment is received by the person on the amount, if any, by which the cumulative amount of in-year R&D payments received by the person, including that payment, exceeds the person’s research and development tax credit for the income year. Subsection (1) applies for the 2027–28 and later income years. 204 Section 124B amended (What this Part does) After section 124B(1)(c), insert: d may apply to the Commissioner to be approved as a digital services provider. After section 124B(2)(g), insert: h digital services providers, see section 124ZJ : i bookkeepers, see section 124ZK . 205 Section 124D amended (Representatives) Replace 124D(1), words before the paragraphs, with: 1 A person may act on behalf of another person in relation to their tax affairs or their social policy entitlements and obligations, or both, as a representative if they— 206 Section 124F amended (Nominated persons) After section (2), insert: Persons who may not be nominated persons 3 Subject to section 124G(4), the following persons may not be nominated persons unless the Commissioner determines otherwise: a a person who has been removed from the list of tax agents under section 124G(2)(b): b a person who has been disallowed as a representative under section 124G(2)(b): c a person who has been disallowed as a nominated person under section 124G(3)(b): d a person whose approval as a PAYE intermediary has been revoked under section 124J(1)(f): e a person whose tax pooling account has been wound up under section 124X(2)(g): f a person whose approval as a digital services provider has been revoked under section 124ZJ(4)(c) : g a person who has been disallowed as a bookkeeper under section 124ZK(5)(b) . 207 Section 124G amended (Refusal, removal, or disallowance of status of tax agents, representatives, and nominated persons) Replace section 124G(3)(a) with: a the person is not a person excluded under subsection (4); and 208 Section 124I amended (Application for approval as PAYE intermediary) Replace section 124I(2) with: 2 The Commissioner may approve an application if the Commissioner is satisfied that— a the applicant will comply with the PAYE rules and the ESCT rules if they assume an employer’s obligations under those rules; and b the applicant has systems to allow them to make payments and provide information in the format required by the Commissioner; and c approving the applicant as a PAYE intermediary would not adversely affect the integrity of the tax system; and d if the applicant is not a natural person, the applicant has complied with section 124E as if references in that section to a representative included an application for approval as a PAYE intermediary. 209 Section 124J amended (Revocation of approval) After section 124J(1)(e), insert: f continuing as a PAYE intermediary would adversely affect the integrity of the tax system. 210 Section 124W amended (Requirements for applications to establish tax pooling accounts) Replace section 124W(2) with: 2 The Commissioner may approve an application if the Commissioner is satisfied that— a the applicant is able to operate the account correctly; and b the applicant has systems to allow them to make payments and provide information in the format required by the Commissioner; and c approving the applicant as a tax pooling intermediary would not adversely affect the integrity of the tax system; and d if the applicant is not a natural person, the applicant has complied with section 124E as if references in that section to a representative included a person applying to establish a tax pooling account. 211 Section 124X amended (Winding up tax pooling accounts) After section 124X(2)(f), insert: g allowing the person to continue as a tax pooling intermediary would adversely affect the integrity of the tax system. 212 New cross-headings and sections 124ZJ and 124ZK inserted After section 124ZI, insert: Digital services providers 124ZJ Digital services providers Approval of digital services providers 1 The Commissioner may approve a person as a digital services provider if satisfied that— a the person provides digital services; and b approving the person would not adversely affect the integrity of the tax system; and c the person has entered into any agreement required by the Commissioner; and d if the person is not a natural person, the person has complied with section 124E as if references in that section to a representative included an application for approval as a digital services provider. Discretion 2 In deciding whether to approve a person under subsection (1) , the Commissioner may have regard to whether approving the person would result in net costs to the administration of the tax system or a social policy programme administered by the Commissioner. Conditions of approval 3 The Commissioner may impose conditions on an approval. Revocation of approval 4 The Commissioner may revoke an approval if satisfied that— a the person no longer meets the requirements in subsection (1) ; or b the person has breached a condition of approval; or c allowing the person to continue as a digital services provider would adversely affect the integrity of the tax system; or d allowing the person to continue as a digital services provider would result in net costs to the administration of the tax system or a social policy programme administered by the Commissioner. Notification of intention to revoke approval 5 For the purposes of subsection (4) , the Commissioner must— a notify the person of the Commissioner’s intention to exercise the discretion; and b consider any arguments against the Commissioner’s intention to exercise the discretion that are provided within 30 days from the date of the notice or, if appropriate in the circumstances, a later date set by the Commissioner. Integrity concerns 6 The procedural requirements set out in subsection (5) may be disregarded if the Commissioner considers it necessary in the circumstances to protect the integrity of the tax system. However, the Commissioner must notify the person that their approval as a digital services provider has been revoked. Effective date 7 Having considered any arguments provided under subsection (5)(b) , the Commissioner must notify a person on revoking their approval as a digital services provider. The revocation takes effect on the date of the notice. However, if the Commissioner disregards the requirement to notify the person for the reason set out in subsection (6) , the effective date is the date of the notification under that subsection. Publication of approved digital services providers  8 The Commissioner must publish the name of each approved digital services provider. Existing digital services providers treated as approved and published 9 A person who, immediately before the commencement of this section, had been granted access by the Commissioner to Inland Revenue systems for the purpose of providing digital services— a is treated as approved under subsection (1) ; and b must be included in the list published under subsection (8) . Bookkeepers 124ZK Bookkeepers Requirements for bookkeepers 1 A person may act as a bookkeeper on behalf of another person in relation to their tax affairs or their social policy entitlements and obligations, or both, if they— a meet the requirements of subsection (2) ; and b if the person is not a natural person, the person has complied with section 124E as if references in that section to a representative included an application for approval as a bookkeeper; and c are approved as a bookkeeper by the Commissioner under subsection (3) . Eligibility requirements 2 A person is eligible to be a bookkeeper if they— a have signed authorities to act for 10 or more other persons in relation to their tax affairs or social policy entitlements and obligations, or both; and b are a person in a business, occupation, or employment in which they provide bookkeeping services to other persons. Requirement to approve 3 The Commissioner must approve the person as a bookkeeper if the Commissioner is satisfied by the available information that— a the person meets the requirements of subsection (2) ; and b approving the person as a bookkeeper would not adversely affect the integrity of the tax system. Notification of approval 4 The Commissioner must notify the person when they have been approved as a bookkeeper under subsection (3) , and the approval takes effect on a date set out in the notice. Disallowance of approval 5 The Commissioner may disallow a person’s approval as a bookkeeper if the Commissioner considers that— a the person does not meet the eligibility requirements; or b continuing to allow the person to act on behalf of another person in relation to their tax affairs or their social policy entitlements and obligations, or both, would adversely affect the integrity of the tax system. Notification of intention to disallow approval 6 For the purposes of subsection (5) , the Commissioner must— a notify the person of the Commissioner’s intention to exercise the discretion; and b consider any arguments against the Commissioner’s intention to exercise the discretion that are provided within 30 days from the date of the notice or, if appropriate in the circumstances, a later date set by the Commissioner. Integrity concerns 7 The procedural requirements set out in subsection (6) may be disregarded if the Commissioner considers it necessary in the circumstances to protect the integrity of the tax system. However, the Commissioner must notify the person that their approval as a bookkeeper has been disallowed. Effective date 8 Having considered any arguments provided under subsection (6)(b) , the Commissioner must notify a person on disallowing their approval as a bookkeeper. The disallowance takes effect on the date of the notice. However, if the Commissioner disregards the requirement to notify the person for the reason set out in subsection (7) , the effective date is the date of the notification under that subsection. Existing bookkeepers treated as approved 9 A person who, immediately before the commencement of this section, was approved as a representative and was recorded by the Commissioner as providing bookkeeping services is treated as approved as a bookkeeper under subsection (3) . 213 Section 138E amended (Certain rights of challenge not conferred) In section 138E(1)(e)(iv), replace and 68CD with 68CD, 68CG . In section 138E(1)(e)(iv), replace 78B with 68CH, 78B . Subsection (1) applies for the 2027–28 and later income years. 214 Section 142J amended (When reporting requirements for operators under model rules for digital platforms not met) Replace section 142J(1)(a) with: a is required under section 185S to meet all the requirements set out in the model reporting standard for digital platforms; and 215 Section 142K amended (When reporting requirements for sellers operating on digital platforms not met) In section 142K(1)(a), replace under sections 185S and 185T with under section 185S . Replace section 142K(2)(c) with: c do not provide information that the reporting platform operator requires them to provide to enable the reporting operator to meet its obligations as an operator on the digital platform under the model reporting standard for digital platforms. 216 Section 143 amended (Absolute liability offences and strict liability offences) Replace section 143(2E) with: 2E No person may be convicted of an offence against subsection (1) if the requirement with which the person does not comply is a requirement under the model reporting standard for digital platforms. 217 Section 150 amended (Charging document may charge several offences) In section 150(4)(a), delete 105, . 218 Section 157 amended (Deduction of tax from payments due to defaulters) Replace section 157(5) with: 5 When the Commissioner issues a notice to a person under subsection (1) or (4), the Commissioner must notify the taxpayer of the following: a that a notice has been issued to the person; and b the information in the notice that relates to the taxpayer; and c that a deduction will be made from an amount payable in relation to the taxpayer. In section 157(5B), replace send a copy of the notice to the affected taxpayer with notify the taxpayer and replace address for the affected taxpayer with address for the taxpayer . 219 Section 185E amended (Purpose) Replace section 185E(5) with: 5 Section 185S imposes requirements on a person relating to the reporting of information required by the model reporting standard for digital platforms. 220 Section 185T repealed (Implementation of and requirements for extended model reporting standard for digital platforms) Repeal section 185T. 221 Section 226F amended (Application of changes to model reporting standards for digital platforms) In section 226F(1)(a), delete or extended model reporting standard for digital platforms, as applicable . In section 226F(1)(c), delete or extended model reporting standard for digital platforms, as applicable, . 222 Schedule 1 amended (Inland Revenue Acts) In Schedule 1, delete— a Estate and Gift Duties Act 1968: b Estate Duty Abolition Act 1993: c Estate Duty Repeal Act 1999. 223 Schedule 7 amended (Disclosure rules) In Schedule 7, Part B, clause 16, after paragraph (f), insert: g a person who uses the digital services provided by a digital services provider approved under section 124ZJ , a revocation of the provider’s approval under section 124ZJ : h a person for whom a bookkeeper is acting, a decision of the Commissioner refusing to approve the person’s status, or disallowing the person’s status, as a bookkeeper. Replace Schedule 7, Part B, clause 18 with: 18 Digital services providers Section 18 does not prevent the Commissioner communicating information about a person to a digital services provider approved under section 124ZJ if the person has consented to the communication and uses the digital services provided by the digital services provider. 224 Amendments to correct terminology for macron in Māori The provisions of the Tax Administration Act 1994 set out in column 1 of the table in Part 2 of Schedule 2 are amended as set out in columns 2 and 3 of that table. 225 Amendments to KiwiSaver Act 2006 Sections 226 to 227 amend the KiwiSaver Act 2006. 226 Section 4 amended (Interpretation) In section 4(1), in the definition of salary or wages , paragraph (a)(i), replace and (8) with (8), and (11) . In section 4(1), insert, in appropriate alphabetical order: unsupported child’s benefit caregiver , in relation to a person ( B ), means any person who receives an unsupported child’s benefit for B in accordance with section 46 of the Social Security Act 2018 227 Section 35 amended (Opting in by persons under 18) In section 35(3), in the words before the paragraphs, replace A person who is 16 or 17 years old with a guardian or an Oranga Tamariki guardian may opt in if the person and 1 of their guardians or Oranga Tamariki guardians with A person who is 16 or 17 years old with a guardian, an Oranga Tamariki guardian, or an unsupported child’s benefit caregiver may opt in if the person and 1 of their guardians, Oranga Tamariki guardians, or unsupported child’s benefit caregivers . 228 Amendments to Student Loan Scheme Act 2011 Sections 229 to 231 amend the Student Loan Scheme Act 2011. 229 Section 14 amended (Student loan establishment fee) In section 14, replace each time the borrower enters into with the first time money is advanced by the loan manager to the borrower under . 230 Section 162A amended (Offence for default of overseas-based repayment obligations) After section 162A(1), insert: 1A If the Commissioner has been unable to notify the person under subsection (1), despite making reasonable efforts to do so, the person commits an offence under subsection (1) if the person has previously communicated with the Commissioner on the default and knowingly failed or refused to make reasonable efforts to pay, or make arrangements to pay, the amount in default. 231 Schedule 3 amended (Adjustments to net income for purposes of section 73, applying from 1 April 2014 for 2014–2015 and later tax years) In Schedule 3, clause 5A(1), after paragraph (b), insert: Assessable withdrawal amount c an assessable withdrawal amount for which the borrower chooses to have a transfer scheme pay an amount of TSWT under section RI 2 of the Act. 232 Amendments to Child Support Act 1991 Sections 233 to 235 amend the Child Support Act 1991. 233 Section 2 amended (Interpretation) In section 2(1), replace the definition of income with: income — a has the same meaning as net income has in section YA 1 of the Income Tax Act 2007; but b does not include an assessable withdrawal amount for which a person chooses to have a transfer scheme pay an amount of TSWT under section RI 2 of that Act (with terms used in this definition having the same meaning as in that Act) 234 Section 89B amended (Definitions for this Part) In section 89B, in the definition of income ,— a in paragraph (b), after 1976) , insert ; but ; and b after paragraph (b), insert: c does not include an assessable withdrawal amount for which a person chooses to have a transfer scheme pay an amount of TSWT under section RI 2 of the Income Tax Act 2007 (with terms used in this paragraph having the same meaning as in that Act). 235 Section 156 amended (Copy of deduction notice to be given to liable person) In the heading to section 156, replace Copy of deduction notice with Notification . Replace section 156(1) with: 1 When the Commissioner gives a deduction notice to a person under section 154, the Commissioner must notify the liable person of the following: a that a deduction notice has been given to the person; and b the information in the deduction notice that relates to the liable person; and c that a deduction will be made from money payable in relation to the liable person. In section 156(2), replace such copy shall be deemed to be with notification under subsection (1) is treated as . In section 156(3), replace send a copy of the notice to with notify . 236 Amendments to Taxation (Budget Measures) Act 2026 Sections 237 and 238 amend the Taxation (Budget Measures) Act 2026. 237 Section 17 amended (Section MC 5 replaced (Third requirement: residence or entitlement to emergency benefit)) In section 17, new section MC 5(1)(b)(i) and (ii), replace : with ; and . 238 Section 20 amended (New sections MD 7B and MD 7C inserted) In section 20, new section MD 7C(4)(c), replace or been with or has been . 239 Amendment to Gaming Duties Act 1971 Section 240 amends the Gaming Duties Act 1971. 240 Section 12L amended (Deduction of duty from payments due to defaulters) Replace section 12L(2) with: 2 When the Commissioner issues a notice to a person under subsection (1), the Commissioner must notify the defaulter of the following: a that a notice has been issued to the person; and b the information in the notice that relates to the defaulter; and c that a deduction will be made from an amount payable in relation to the defaulter. 2A For the purposes of the Tax Administration Act 1994, every notification under subsection (2) is treated as a notice required by this Act to be given by the Commissioner to the defaulter. In section 12L(4B), replace send a copy of the notice to with notify . 241 Repeals The following enactments are repealed: a the Estate and Gift Duties Act 1968 (1968 No 35): b the Estate Duty Abolition Act 1993 (1993 No 13): c the Estate Duty Repeal Act 1999 (1999 No 64). 242 Consequential amendments The enactments listed in Schedule 3 are amended as set out in that schedule. 243 Purpose The purpose of this Part is to re-enact the provisions relating to the approved issuer levy contained in the Stamp and Cheque Duties Act 1971 to improve accessibility and transparency of the provisions. The reordering and changes of style and language carried out by this Part in relation to those provisions are not intended to affect the interpretation or effect of those provisions as they are included in this Part . 244 Interpretation In this Part , unless the context otherwise requires,— approved issuer has the same meaning as in section YA 1 of the Income Tax Act 2007 approved issuer levy means the levy referred to in clause 250 Commissioner means the Commissioner of Inland Revenue as defined in the Tax Administration Act 1994 interest has the same meaning as in paragraphs (a) and (b) of the definition of interest in section YA 1 of the Income Tax Act 2007 for the purposes of the NRWT rules of that Act leviable value means, for any registered security at the time of any payment of interest for that registered security, the amount of that payment of interest money lent has the same meaning as in section YA 1 of the Income Tax Act 2007; and money lending has a corresponding meaning NRWT has the same meaning as in section YA 1 of the Income Tax Act 2007 NRWT rules has the same meaning as in section YA 1 of the Income Tax Act 2007 paid and payment each has the meaning corresponding to paragraph (a) of the definition of pay in section YA 1 of the Income Tax Act 2007 registered security — a means, at any time, any transaction involving money lent to an approved issuer that is— i registered by the Commissioner under clause 248 on the application of the approved issuer; or ii one of a class of transactions so registered; and b includes a transaction involving money lent to an approved issuer that is treated by the Commissioner as a registered security because the approved issuer has paid interest under the transaction, and— i the transaction is a notional loan under section FG 2 of the Income Tax Act 2007, and NRWT was not withheld from the interest under section RF 3 of that Act; or ii an amount of the interest was apportioned to a New Zealand source under section YD 5(4) of that Act, and NRWT was not withheld from the amount under section RF 3 of that Act; and c does not include a transaction or class of transactions that has been deregistered under clause 248 unless the transaction or class of transactions has been reregistered by the Commissioner in accordance with clause 247(2) . Unless the context otherwise requires, other terms used in this Part have the same meanings as they have in the Income Tax Act 2007. 245 Transitional, savings, and related provisions The transitional, savings, and related provisions set out in Schedule 4 have effect according to their terms. 246 Part 6 binds the Crown Part 6 binds the Crown. 247 Application to register securities Any approved issuer may apply to the Commissioner, in such form as the Commissioner may approve, for registration as a registered security or registered securities of— a any transaction involving money lent to that approved issuer; or b any class of transactions involving money lent to that approved issuer. For the purposes of subclause (1) , an approved issuer that is a limited partnership eligible to elect to pay approved issuer levy for a security under section 32M(1B) of the Tax Administration Act 1994 may also apply for registration of any transaction or class of transactions involving money lent by that approved issuer. 248 Registration of securities by Commissioner When the Commissioner receives an application for registration of a transaction or class of transactions from any approved issuer in accordance with clause 247 , the Commissioner must, within 20 working days after receipt of the application,— a register the transaction or class of transactions; and b notify the approved issuer of that registration. Despite subclause (1) , the Commissioner must only register a transaction or class of transactions that has previously been deregistered under clause 249 if the Commissioner is satisfied— a the amount outstanding in the notification under that section has been paid; and b the approved issuer can reasonably be expected to be compliant with their obligations under this Part in the future. Registration of the transaction or class of transactions under this section takes effect on the date the Commissioner receives the application for registration. Despite subclause (3) , if the Commissioner receives an application for registration of a transaction or class of transactions after the date (the first interest date ) the first interest payment is made for which an NRWT liability arises under that transaction or class of transactions, the Commissioner may backdate the date of registration if the Commissioner is satisfied the delay in the approved issuer making the application— a was caused by an oversight; or b occurred despite reasonable efforts by the approved issuer to make the application by the first interest date. Without limiting the Commissioner’s discretion under subclause (4) , when determining whether an approved issuer’s delay in making an application was caused by an oversight or occurred despite the approved issuer’s reasonable efforts, the Commissioner may consider any of the following factors in relation to the approved issuer: a the explanation and evidence they provided about the cause of the error: b their history of compliance with their tax obligations: c whether the documentation recording the money lent includes a clause dealing with approved issuer levy: d whether they have already paid an amount that would have been approved issuer levy if the transaction or class of transactions had been registered and they had been an approved issuer at the time of payment: e their tax residence during the term of the transaction: f the duration of the delay in applying for the registration: g whether they have made a voluntary disclosure of the error. The backdated date of registration referred to in subclause (4) must not be earlier than 1 April 2025. 249 Deregistration of registered securities This section applies, for an approved issuer and a registered security, when— a all amounts of approved issuer levy payable by the approved issuer in relation to the security for a tax year and the immediately preceding tax year are outstanding on the 21 April after the end of the tax year; and b the Commissioner notifies the approved issuer and the lender of— i the amounts of all outstanding approved issuer levy payable by the approved issuer and the dates on which those amounts were payable; and ii the intention to deregister the security; and c not less than 6 months have elapsed since the notification under paragraph (b) was made; and d any part of the outstanding amount in paragraph (a) remains outstanding and— i is not the subject of an instalment arrangement; or ii is the subject of an instalment arrangement but the terms of that arrangement have not been complied with. The Commissioner may deregister the security by notifying the approved issuer and the lender that the security is deregistered. Deregistration of the security takes effect on the date of the notification under subclause (2) . 250 Approved issuer levy Approved issuer levy shall be computed in respect of any registered security at any time at the rate of 2 cents for every $1 of the leviable value of the registered security at that time. 251 Payment of approved issuer levy Any approved issuer, or person on behalf of an approved issuer,  making payment of any amount of approved issuer levy for any payment of interest made in respect of a registered security during any month must pay that amount to the Commissioner no later than the 20th day of the following month. Any payment of approved issuer levy must be accompanied by a statement in such form as the Commissioner may approve showing such particulars as the Commissioner may prescribe in relation to— a the payments of interest in respect of which the levy is paid: b the approved issuer or issuers of the registered security or securities in respect of which the payments of interest were made: c the registered security or securities in respect of which the payments of interest were made: d the computation of the amount of approved issuer levy. 252 Payment of approved issuer levy in 1 instalment If, for a tax year, a person estimates they will not be required to make approved issuer levy payments that total $10,000 or more, they may pay the total amount of levy payments for the tax year to the Commissioner in 1 instalment that is due and payable on the 20 April following the end of the tax year. If the $10,000 total is reached at any time during the tax year, the person must— a pay to the Commissioner all approved issuer levy payments owed by them for the period from the beginning of the year until the end of the month in which the $10,000 total is reached no later than the 20th of the month following the end of that period: b pay approved issuer levy payments for the rest of the year in accordance with clause 251(1) . If a person is no longer required to pay the approved issuer levy, the person must pay to the Commissioner all approved issuer levy payments due and not paid no later than the 20th of the month following the month in which they stop being required to pay the levy. Payments made in accordance with this section must be accompanied by a statement that meets the requirements of clause 251(2) . 253 When payment of approved issuer levy compulsory An approved issuer must pay approved issuer levy if they pay interest under a transaction, and— a the transaction is a notional loan under section FG 2 of the Income Tax Act 2007, and NRWT was not withheld from the interest under section RF 3 of that Act; or b an amount of the interest was apportioned to a New Zealand source under section YD 5(4) of that Act, and NRWT was not withheld from the amount under section RF 3 of that Act. 254 Approved issuer levy and zero-rating of NRWT For the purposes of the NRWT rules, an exemption under a double tax agreement, and clause 250 of this Part , and notwithstanding any provision of the NRWT rules, a payment of interest is treated as being paid by an approved issuer in respect of a registered security only when,— a and to the extent to which, payment is made by or on behalf of the approved issuer of approved issuer levy on the leviable value of the registered security at the time of the payment of interest— i at the rate specified in clause 250 ; and ii by the date specified in either clause 251 or 252 , or by a later date upon the payment of any interest or penalties imposed under Part 7 or 9 of the Tax Administration Act 1994; or b the registered security meets the requirements of clause 255 and the approved issuer provides a statement to the Commissioner— i showing the details prescribed by the Commissioner under clause 251(2) for a statement relating to payments of interest under such a registered security; and ii by the time that would be required by clause 251(1) for a payment of the levy in relation to the payment of interest, or by a later date for the statement if that date is set by the Commissioner in a notice given to the approved issuer. For the purposes of clause 250 and subpart FG of the Income Tax Act 2007, when a payment is made by a New Zealand branch of a foreign bank that is notional interest under section FG 3 of that Act,— a the payment is treated as made by an approved issuer; and b the notional loan referred to in section FG 2(1) of that Act is a registered security. 255 Requirements for securities for zero-rating of NRWT A registered security meets the requirements of this section if— a the security is denominated in New Zealand dollars; and b the issue of the security— i was under a regulated offer for the purposes of the Financial Markets Conduct Act 2013, an offer referred to in clause 19 or 21(b) of Schedule 1 of that Act, or an offer to the public for the purposes of the Securities Act 1978; and ii was not a private placement; and c the security is not an asset-backed security; and d the activities of the registrar and the paying agent for the security are carried on through a fixed establishment in New Zealand; and e the security— i is quoted on a licensed market (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013): ii is 1 of several securities meeting the requirements of subclause (2) that are traded in a market bringing together buyers and sellers of such securities. A security meets the requirements of this subsection if, at or before the time of the payment of interest referred to in clause 254 in respect of the registered security,— a the security is one of several identical debt securities (the class of securities ) that are registered securities; and b the group of persons who each hold a security included in the class of securities consists of 100 or more persons; and c the issuer of the class of securities has reasonable grounds for expecting that each of the 100 or more persons in the group— i is not associated with the issuer except by being a beneficiary of a trust established for the main purpose of protecting and enforcing beneficiaries’ rights under the class of securities; and ii is not associated with another member of the group; and iii is not part of an arrangement intended to temporarily increase the number of persons in the group; and d no person or group of associated persons holds more than 10% by value of the class of securities. 256 Refund of levy paid in error or in excess When, at any time within 4 years after the date of payment, or if application for the refund is made within that period, the Commissioner is satisfied that any amount of approved issuer levy has been paid in error or excess, the Commissioner may refund the amount paid in error or the excess to the person entitled. A refund under subclause (1) must be made in accordance with the requirements of section 184A of the Tax Administration Act 1994. For the purposes of the NRWT rules or an exemption under a double tax agreement, as applicable, if an amount is refunded under subclause (1) , the payment of interest to which the approved issuer levy relates is treated as not having been paid by an approved issuer in relation to a registered security. All money payable by the Commissioner under this section by way of refund of levy may be paid without further appropriation than this section. 257 Refund of approved issuer levy when transfer pricing adjustment made A person may apply to the Commissioner for a refund of an amount of approved issuer levy if, and to the extent to which, a reduction in the interest payable or an amount treated as interest under section FG 3 of the Income Tax Act 2007 arises through the application of a transfer pricing adjustment under section GC 7 of that Act. The person may ask the Commissioner to apply some or all the amount of a refund under this section to satisfy, in whole or in part, a liability under the Inland Revenue Acts. 258 Repeals The following enactments are repealed: a the Stamp and Cheque Duties Act 1971 (1971 No 51): b the Stamp Duty Abolition Act 1999 (1999 No 61). 259 Consequential amendments The enactments listed in Schedule 5 are amended as set out in that schedule. 1 Amendments to Income Tax Act 2007 to correct terminology relating to formulas The following is a medium-sized table with 10 rows and 3 columns. CG 8(3) EE 34B(3) LY 4(3) DB 46(8) EJ 20D(3) LY 7(6) DE 2(3) EZ 5(5), (7) LZ 6(4) DG 22(8) EZ 6(3), (5) MK 4(5) EC 41(5) FA 11B(4) MX 7(3), (5) EC 42(3) FE 6(3E) OA 18(3) EE 27(6) LD 1(3) OZ 11(3) EE 28(5) LD 4(3) RB 3(3) EE 33(3) LJ 5(4C) RC 11(2) EE 34(3) LP 2(3) RL 4(5) The following is a large-sized table of 93 rows and 3 columns. CB 15E(4) EX 20D(5), (11) LC 15(3) CB 26(3) EX 20E(4), (8) LE 2(4) CB 32C(5), (7), (7C), (9) EX 21(12) LE 2B(3) CD 18(3) EX 21D(5) LE 5(3) CD 23(2), (4) EX 21E(6) LE 6(3) CD 38(2) EX 32(4), (6), (9) LE 8B(3) CD 43(2), (4), (6H), (6K), (25), (27) EX 50(2), (7) LJ 5(3), (6) CD 44(2), (10D) EX 51(2) LJ 6(4) CE 1E(3) EX 52(4), (9), (13) LK 2(2) CE 2(2), (6) EX 53(4), (11), (15) LK 7(4), (6) CF 3(11), (13), (15) EX 55(4), (6), (8) LK 11(4) CG 8C(5) EX 56(2), (7), (16) LO 2(3) CR 4(3) EX 58(3) LT 1(3), (4E) CW 3C(10) EX 60(3) LU 1(3) CX 63(3) EX 61(3) LY 6(3) CZ 32(3) EX 65(4), (8) LY 7(4) CZ 33(4) EX 66(4) LZ 7(3) DB 18AA(3) EX 66B(4) MB 2(2) DB 28(5) EY 15(3) MB 4(4), (6) DB 31(4C) EY 17(2) MB 7(4), (6) DB 40(4) EY 21(2) MD 1(3) DB 46(3), (10) EY 24(2), (4) MD 2(4) DB 65B(7) EY 25(2) MD 3(3) DE 2(6), (9), (12) EY 26(2) MD 10(3) DE 12(3) EY 27(2) MD 12(3) DF 4(3) EY 28(2), (5) MD 12B(3) DG 9(3) EY 29(2), (6) MD 13(3) DG 11(3C), (5), (6D) EY 30(8) MD 16(3) DG 12(6), (7D) EY 31(3) ME 1(3) DG 13(4), (8), (9D) EZ 1(3) ME 3(3) DG 16(3) EZ 4B(6), (13) MF 3(4) DG 17(3) EZ 10(2) MF 4H(3) DG 18(5) EZ 14(6) MF 4I(3) DG 19(4) EZ 23(5) MF 4J(3), (5) DI 5(2) EZ 23B(5) MF 4K(3), (5) DO 4(5) EZ 23BB(5), (13) MG 1(3) DO 5(5) EZ 23BC(6) MG 2(2) DO 9B(2) EZ 23BE(6) MG 3(2) DO 12(5) EZ 26(3), (8) MX 3(3) DP 3(5) EZ 52D(6) MX 6(3) DS 3(4) EZ 54(3) MZ 2(3) DT 2(4) EZ 61(3) OB 19(2) DV 3(2) FA 4(5) OB 32(5) DV 6(2) FA 10(7) OB 43(2) DV 19(6) FA 11(4) OB 45(5), (7) DV 21(5) FA 15(4) OB 46(2) DV 23(4) FA 16(3) OB 60(4), (7) DV 24(5) FA 17(3) OB 67(2B), (5) DV 27(8) FE 5(1BD), (1F) OB 69(8) DW 4(4), (4C) FE 6(3C) OB 72B(3) DZ 15(3) FE 6B(3) OB 73(5), (7) DZ 17(3) FE 7(3) OB 74(5), (7) DZ 18(3) FE 7B(4) OB 78(4), (6) EC 4B(6) FE 12(3B) OB 78B(4), (6) EC 8(5) FE 21(2) OB 79(4) EC 17(7) FE 22(3) OB 80(3) EC 26(3) FE 23(2) OB 83(4) EC 26B(4) FH 3(5) OE 19(2) EC 48(4) FH 12(4) OF 4(2) ED 1B(7) FO 19(2) OF 5(5) ED 2B(5) FO 20(2) OK 12(5) EE 16(2) FP 6(4) OK 16(2) EE 17(2) FP 10(3) OK 19(3) EE 21(3) FP 24(3) OP 45(5), (7) EE 25(3) FP 25(3) RC 10(3), (6) EE 30(5) FZ 2(10) RC 20(4) EE 48(1C) GB 46(3) RC 22(3), (5) EE 49(4) GC 18(7) RC 23(3) EE 50(3), (7), (10) HA 15(3), (7) RD 17(4) EE 56(2) HA 41(2) RD 20B(5) EJ 4(4) HB 5(2) RD 20C(4) EJ 10(4) HB 11(4), (7C) RD 50(3), (3C) EJ 10B(4), (7), (9) HC 22(3) RD 51(3), (4) EJ 12B(4) HC 31(5) RD 70(3) EJ 20B(3) HC 31B(4) RE 12(3) EJ 20E(4) HG 5(2) RE 13(3) EK 7(3) HG 11(4), (7C) RE 14(3) EK 8(3) HM 35(2), (6) RE 14B(3) EK 12(4) HM 36(3) RE 15(3) EK 22(4) HM 37(4) RE 16(4) EK 23(2) HM 47(4) RE 17(3) EL 20(3) HM 50(4) RE 18(2) EM 5(5), (10), (10C) HM 69(3) RE 18B(3), (5) EM 5B(5), (7) HM 70(2) RF 2C(5) EM 6(3) HR 11(4) RF 9(3) EM 7(3), (5) HZ 8(3) RF 10(3), (5) EW 27(4) IB 4(3) RF 12B(2) EW 31(6) ID 4(5) RF 12F(3) EW 46D(4) LA 5(5C) RH 6(3) EW 63(2) LB 7(4) RL 4(3), (7) EX 17(4) LB 8(3) RM 6B(3) EX 20B(2), (4C) LC 13(3) RM 33(3) EX 20C(3), (4), (7), (9) LC 14(3) YD 5(5), (9) The following is a medium-sized table of 14 rows and 3 columns. CB 15E(4) EW 27(4) EZ 1(3) CB 28(3) EW 31(6) EZ 4B(6) CX 63(3) EW 63(2) EZ 14(6) DB 46(3) EX 20B(2), (4C) EZ 26(3), (8) DV 3(2) EX 20C(4) EZ 54(3) DV 6(2) EX 20D(5), (11) FE 21(2) EE 16(2) EX 20E(4) FP 24(3) EE 17(2) EX 21D(5) HA 41(2) EE 21(3) EX 21E(6) HB 11(4) EE 49(4) EX 50(2) HG 11(4) EJ 12B(4) EX 51(2) LC 13(3) EJ 20B(3) EX 52(4), (9) LC 14(3) EK 7(3) EX 53(4), (11) LC 15(3) EK 8(3) EX 56(2), (7), (16) MD 3(3) The following is a small-sized table of 9 rows and 3 columns. Provision in Income Tax Act 2007 Replace With Heading to section CB 28(3) Definitions of items Items Heading to section CF 3(18) Definition of other Other Heading to section DB 31(5B) A definition Meaning of limited-recourse arrangement Section EC 8(4) A definition and a formula Class closing animal balance Heading to section EL 17(2) and (4) Definition of items Items in formula Heading to section MB 11(3) Definitions of items Items Heading to section OB 42(2) Definitions of items Items Heading to section OB 75(3) Definitions of items Items 2 Amendments to correct terminology for macron in Māori This is a large table of 241 rows and 3 columns. Provision in Income Tax Act 2007 Replace With Heading to CD 37 Maori Māori CD 37 and list of defined terms Maori Māori Heading to CD 43(17) Maori Māori CD 43(17) and list of defined terms in each place Maori Māori Heading to CV 11 Maori Māori CV 11(1), (2), and list of defined terms in each place Maori Māori Heading to CW 1 Maori Māori Heading to CW 1(2) in each place Maori Māori CW 1(1), (2), (4), and list of defined terms in each place Maori Māori Heading to CW 3 Maori Māori CW 3(1) and list of defined terms Maori Māori CW 6(2)(c) and list of defined terms Maori Māori CW 42(7)(b)(iv) Maori Māori Heading to CW 55 Maori Māori CW 55 and list of defined terms in each place Maori Māori CX 50B(1)(a)(ii) Maori Māori Heading to DP 8 Maori Māori Heading to DP 8(2) Maori Māori DP 8(1)(b), (2), and list of defined terms in each place Maori Māori Heading to DP 9 Maori Māori Heading to DP 9(2) Maori Māori DP 9(1), (2), and list of defined terms in each place Maori Māori Heading to DV 12 Maori Māori DV 12(1) Maori authority Māori authority DV 12(1)(a) Maori association Māori association DV 12(1B), (2), and list of defined terms in each place Maori Māori EH 3(1)(c)(ii) and list of defined terms Maori Māori FD 2(6)(a) and list of defined terms in each place Maori Māori FD 3(1)(c) and list of defined terms in each place Maori Māori GB 22(1)(c) and list of defined terms Maori Māori Cross-heading above GB 42 Maori Māori Heading to GB 42 Maori Māori GB 42(2), (3), (4), and list of defined terms in each place Maori Māori Heading to GB 43 Maori Māori GB 43(1)(b), (2), (3), (5), and list of defined terms in each place Maori Māori HC 1(2)(c) and list of defined terms Maori Māori HC 35(4)(b)(iv) and list of defined terms Maori Māori HC 38(2)(a)(i) and list of defined terms Maori Māori Subpart HF heading Maori Māori Heading to HF 1 in each place Maori Māori Heading to HF 1(1) and (2) Maori Māori HF 1(1), (2)(b), (c), (d), (e), and list of defined terms in each place Maori Māori HF 1(2) Maori Māori Heading to HF 2 Maori Māori HF 2(1), (2)(d)(i), (3)(e)(i), and list of defined terms Maori Māori Heading to HF 2(4) Maori Māori HF 2(4) Maori Trustee Māori Trustee HF 2(4) Maori Trustee’s Māori Trustee’s Heading to HF 3 Maori Māori HF 3(1), (2), (3), and list of defined terms in each place Maori Māori Cross-heading above HF 4 Maori Māori Heading to HF 4 Maori Māori HF 4(1), (2), (4), (5), (6), and list of defined terms in each place Maori Māori HF 5 and list of defined terms in each place Maori Māori Heading to HF 6 Maori Māori HF 6 and list of defined terms in each place Maori Māori HF 8 and list of defined terms in each place Maori Māori Heading to Table H1 Maori Māori Table H1, rows 1, 2, 3, 4, 5, and 6 in each place Maori Māori Heading to HF 9(1), (2), (3), and (4) Maori Māori HF 9(1), (2), (3), (4), and list of defined terms in each place Maori Māori HF 10(1), (2), (3), (4), and list of defined terms in each place Maori Māori Heading to HF 11 Maori Māori HF 11(1), (4)(b), and list of defined terms Maori Māori HM 70(2)(b)(ii) and list of defined terms Maori Māori HR 12(3)(d) Maori reservation Māori reservation LA 6(1)(e) Maori Māori Heading to LB 6(4) Maori Māori LB 6(4) Maori Māori LD 2(d) and list of defined terms Maori Māori LE 2(2)(b),(c) and list of defined terms Maori Māori Subpart LO heading Maori Māori Heading to LO 1 Maori Māori LO 1(1), (3), and list of defined terms in each place Maori Māori LO 2(1), (3)(c), and list of defined terms in each place Maori Māori Heading to LO 2B Maori Māori LO 2B(1), (2), and list of defined terms in each place Maori Māori Heading to LO 3 Maori Māori LO 3(1) and list of defined terms in each place Maori Māori LO 4(1), (3), and list of defined terms in each place Maori Māori LZ 6(2)(d) and list of defined terms Maori Māori OA 2(1)(g) and list of defined terms Maori Māori Heading to OA 5(8) Maori Māori OA 5(8) Maori Māori OA 5(8)(b) and list of defined terms Maori Māori Heading to OA 6(8) Maori Māori OA 6(8) Maori Māori OA 6(8)(b) and list of defined terms Maori Māori OA 18(1) and list of defined terms in each place Maori Māori OB 1(2)(b) and list of defined terms Maori Māori Heading to OB 20 Maori Māori OB 20(1), (2), and list of defined terms Maori Māori Heading to OB 21 Maori Māori OB 21(1), (2), and list of defined terms in each place Maori Māori Heading to OB 48 Maori Māori OB 48(1), (2), (3), and list of defined terms Maori Māori Table O1, rows 18 and 19 Maori Māori Table O2, row 21 in each place Maori Māori Subpart OK heading Maori Māori Heading to OK 1 in each place Maori Māori OK 1(1), (2), (3), (4), (5), and list of defined terms in each place Maori Māori Cross-heading above OK 2 Maori Māori OK 2(1), (2), (3)(b), (4)(b), and list of defined terms in each place Maori Māori Heading to OK 3 Maori Māori OK 3(1), (2), (4), and list of defined terms in each place Maori Māori OK 4(1), (2), and list of defined terms in each place Maori Māori Heading to OK 5 Maori Māori OK 5(1), (2), and list of defined terms in each place Maori Māori OK 6(1), (2), and list of defined terms in each place Maori Māori OK 6B(1) and (2) in each place Maori Māori OK 6C(1), (2), and (3) in each place Maori Māori OK 8(1), (2), and list of defined terms in each place Maori Māori OK 9(1), (2), (3), and list of defined terms in each place Maori Māori Cross-heading above OK 10 Maori Māori OK 10(1), (2), and list of defined terms in each place Maori Māori Heading to OK 11 Maori Māori OK 11(1), (2), (3), and list of defined terms in each place Maori Māori Heading to OK 12(4) Maori Māori OK 12(1), (2)(b), (c), (3), (4), (5(a), (6)(b), and list of defined terms in each place Maori Māori OK 13(1), (2)(c), (3), and list of defined terms in each place Maori Māori OK 14B(1), (3), and list of defined terms in each place Maori Māori OK 15(1), (2), and list of defined terms in each place Maori Māori Heading to OK 16 Maori Māori OK 16(1), (2), (3), (4), and list of defined terms in each place Maori Māori OK 16(2)(b) Maori Māori OK 17(1), (2), and list of defined terms in each place Maori Māori OK 18(1), (2), (3), and list of defined terms in each place Maori Māori Cross-heading above OK 19 Maori Māori Heading to OK 19 Maori Māori Heading to OK 19(1) and (2) Maori Māori OK 19(1), (2), (3), (4), (5), (6), (7), and list of defined terms in each place Maori Māori Heading to OK 20(3) and (4) Maori Māori OK 20(1), (3), (4), (5), and list of defined terms in each place Maori Māori OK 21(1), (2), and list of defined terms in each place Maori Māori Heading to OK 22 in each place Maori Māori OK 22(1), (2), (3), and list of defined terms in each place Maori Māori OK 23(1), (2), and list of defined terms in each place Maori Māori OK 24(1), (2), and list of defined terms in each place Maori Māori Heading to Table O17 Maori Māori Table O17, heading row Maori Māori Table O17, row 5 Maori Māori Heading to Table O18 Maori Māori Table O18, heading row Maori Māori Table O18, rows 2, 7, 8, and 10 Maori Māori Heading to OZ 7B Maori Māori OZ 7B(1), (2), and list of defined terms in each place Maori Māori OZ 15(4), (5), and list of defined terms Maori Māori RC 5(4) Maori Māori RC 8(9) Maori Māori RC 10(3)(a)(i) Maori Māori RC 11(4) Maori Māori RD 8(1)(b)(iii) and list of defined terms Maori Māori RE 2(1)(c) and list of defined terms Maori Māori RE 4(3)(d) and list of defined terms Maori Māori RE 11(1) and list of defined terms Maori Māori RE 12(5)(a)(ii) and list of defined terms Maori Māori Heading to RE 16 Maori Māori RE 16(1), (2), (3), (4)(c), and list of defined terms in each place Maori Māori RE 21(6) and list of defined terms Maori Māori Heading to RE 21(7) Maori Māori Heading to RE 24 Maori Māori Heading to RE 24(2) Maori Māori RE 24(1), (2) and list of defined terms in each place Maori Māori RH 1(1)(f) Maori Māori RH 2(2) and list of defined terms Maori Māori RH 4(a)(iii) and list of defined terms Maori Māori RM 1(c) and list of defined terms Maori Māori Cross-heading above RM 22 Maori Māori Heading to RM 22 Maori Māori RM 22(1), (2), (3), (4), and list of defined terms in each place Maori Māori Heading to RM 23 in each place Maori Māori RM 23(1), (2), and list of defined terms in each place Maori Māori RM 24 and list of defined terms Maori Māori RM 25(1), (2)(a), and list of defined terms Maori Māori RM 26(1) and list of defined terms in each place Maori Māori Heading to RZ 5D Maori Māori RZ 5D(1), (2), and list of defined terms in each place Maori Māori Heading to RZ 6(2) Maori Māori RZ 6(2) and list of defined terms in each place Maori Māori YA 1 account advantage Maori Māori YA 1 ancillary tax , paragraph (d) Maori Māori YA 1 benchmark distribution , in each place Maori Māori YA 1 charitable purpose , paragraph (b)(i) Maori reservation Māori reservation YA 1 forestry company , in each place Maori Māori YA 1 further income tax , paragraph (b), in each place Maori Māori YA 1 grandparented Maori authority Maori Māori YA 1 grandparented Maori authority Maori Māori YA 1 higher credit value , paragraph (b) Maori Māori YA 1 local authority , paragraph (b)(x) Maori Māori YA 1 look-through company , paragraphs (eb)(i), (ee), and (ef), in each place Maori Māori YA 1 MACA Maori Māori YA 1 Maori authority Maori Māori YA 1 Maori authority Maori Māori YA 1 Maori authority credit Maori Māori YA 1 Maori authority credit , in each place Maori Māori YA 1 Maori authority credit account Maori Māori YA 1 Maori authority credit account return Maori Māori YA 1 Maori authority credit ratio Maori Māori YA 1 Maori authority credit ratio Maori Māori YA 1 Maori authority debit Maori Māori YA 1 Maori authority rules Maori Māori YA 1 Maori authority rules , in each place Maori Māori YA 1 Māori excepted land , paragraphs (a)(ii), (iii) and (b), in each place Maori Māori YA 1 Maori incorporation Maori Māori YA 1 Maori investment company Maori Māori YA 1 Maori investment company , in each place Maori Māori YA 1 Maori land Maori Māori YA 1 Maori land Maori freehold Māori freehold YA 1 Maori owners Maori Māori YA 1 Maori owners , in each place Maori Māori YA 1 maximum permitted ratio Maori Māori YA 1 member , paragraph (e), in each place Maori Māori YA 1 public authority , paragraph (b) Maori Māori YA 1 qualifying debenture , paragraphs (a) and (f) Maori Māori YA 1 residual income tax , paragraph (b)(ix) Maori Māori YA 1 tax advantage , in each place Maori Māori YA 1 tax credit advantage , paragraph (b) Maori Māori YA 1 taxable Maori authority distribution Maori Māori YA 1 taxable Maori authority distribution Maori Māori YA 1 trustee , paragraph (d) Maori Māori YA 1 unit trust , paragraph (b)(iv) Maori Māori Schedule 1, Part A, clause 7, heading Maori Māori Schedule 1, Part A, clause 7, in each place Maori Māori Schedule 1, Part D, clause 4(1) Maori Māori Schedule 1, Part D, clause 6, heading Maori Māori Schedule 1, Part D, clause 6 Maori Māori Schedule 1, Part D, clause 6, table 4, rows 1 and 2, in each place Maori Māori Schedule 1, Part D, clause 7, table 5, row 2 Maori Māori Schedule 6, clause 2, table 2, rows 6 and 7 Maori Māori Provision of Income Tax Act 2007 Insert Delete CX 50B list of defined terms Māori authority credit LB 6 list of defined terms taxable Māori authority distribution OA 8 list of defined terms Maori authority credit account OK 6B list of defined terms Māori authority, Māori authority credit OK 6C list of defined terms Māori authority, Māori authority credit The following is a medium-sized table of 40 rows and 4 columns. Provision in Tax Administration Act 1994 Replace With 3(1) Maori authority distribution penalty tax Maori Māori 22(2BA)(a), (8)(a)(i) Maori Māori 22AA(1), (4) Maori Māori 22AAB(2), (5) Maori Māori 22A(1), (2) Maori Māori 22B(1) Maori Māori 25B(3)(d) Maori Māori 25E(1)(e) Maori Māori 25I heading Maori Māori 25I Maori Māori 31 heading Maori Māori 31(1) in each place Maori Māori 33(1B) Maori Māori 41A(11) Maori Māori 47B(1) Maori Māori 48B(2), (3) in each place Maori Māori 56B(1), (4), (5) in each place Maori Māori 57 heading Maori Māori 57(1), (1B) in each place Maori Māori 69B heading Maori Māori 69B(1), (2), (3) in each place Maori Māori 70B heading Maori Māori 70B(1), (2), (3), (4) in each place Maori Māori 78D(d) in each place Maori Māori 90AG heading Maori Māori 90AG(1)(c), (2) Maori Māori 97B heading Maori Māori 97B(1), (2), (3) in each place Maori Māori 124C(3)(b)(iii) Maori Māori 140CB heading Maori Māori 140CB(1), (2) in each place Maori Māori 181B heading Maori Māori 181B(1), (2), (3) in each place Maori Māori 181D heading Maori Māori 181D Maori Māori 183A(1)(f) Maori Māori 183H(a)(iii) Maori Māori Schedule 6, table 1, rows 15, 21 Maori Māori Schedule 8, Part B, clause 2(3)(d)(i) Maori Māori 3 Consequential amendments to enactments Replace section 20(2)(a) with: a in the case of a trust, society, or institution created or established by a gift made after the commencement of this section and when the society, institution, or trustees of the trust are a tax charity, as defined in section CW 41(5) of the Income Tax Act 2007, be earlier than the time the gift was made; and In section 20(4), replace , the Income Tax Act 2007, and the Estate and Gift Duties Act 1968 with and the Income Tax Act 2007 . Repeal section 47(a)(iii). In section 574(4), delete , or as a disposition of property for the purposes of the Estate and Gift Duties Act 1968 . In section 575(4), delete , or as a disposition of property for the purposes of the Estate and Gift Duties Act 1968 . In section 575A(4), delete , or as a disposition of property for the purposes of the Estate and Gift Duties Act 1968 . Repeal section 21. Replace section 227 with: 227 Status of Crown Contribution for tax purposes A Crown contribution paid in respect of a member of a KiwiSaver scheme under section 226 is not income for the purposes of the Income Tax Act 2007. Repeal section 21K(2). In Schedule 1, Category 4, delete Estate and Gift Duties Act 1968 . 4 Transitional, savings, and related provisions Clauses 248(2) and 249 and paragraph (c) of the definition of registered security in clause 244(1) apply to securities that are registered on or after 1 October 2027. A transaction or class of transactions that, immediately before the commencement of this clause, is a registered security under section 86H of the Stamp and Cheque Duties Act 1971 must be treated as being a registered security under clause 248 of this Part . 5 Consequential amendments to enactments In section 98(2)(a), delete the provisions of the Stamp and Cheque Duties Act 1971 or . In section FG 1(1), replace Stamp and Cheque Duties Act 1971 with Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . In section FG 2(1), replace Stamp and Cheque Duties Act 1971 with Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . In section RF 12(3), replace section 86I of the Stamp and Cheque Duties Act 1971 with section 254 of the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . In section YA 1, definition of registered security , replace section 86F of the Stamp and Cheque Duties Act 1971 with section 244(1) of the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . Replace section 25NB(1)(c) with: c section 252 of the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . In section 32M(2),— a in paragraph (b), replace section 86G of the Stamp and Cheque Duties Act 1971 with section 247 of the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 : b in paragraph (c), replace section 86I of that Act with section 254 of that Part . In section 32M(2C), replace section 86H(3) of the Stamp and Cheque Duties Act 1971 with section 248(4) of the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . In section 32M(5), replace Part 6B of the Stamp and Cheque Duties Act 1971 with the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . Repeal section 91C(1)(d). In section 108(1C)(a)(ii), replace section 86K of the Stamp and Cheque Duties Act 1971 with section 251 of the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . Replace section 138E(1)(e)(iib) with: iib section 248(4) of the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 ; or In Schedule 1,— a delete Stamp and Cheque Duties Act 1971 and Stamp Duty Abolition Act 1999 ; and b insert the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . In section 69XZ(1), replace the Stamp and Cheque Duties Act 1971 with the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . Repeal section 156(4). Repeal section 160(9). In Schedule 1, Category 4, delete Stamp and Cheque Duties Act 1971 . In section 19(10), replace the Stamp and Cheque Duties Act 1971 with the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 . In section 23(10), replace the Stamp and Cheque Duties Act 1971 with the Part 6 of the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Act 2026 .