Interest calculation error for some New Zealand nonresident companies

Because of the New Zealand Inland Revenue Department system miscalculation, all non-resident contractor companies, non-resident  entertainer companies and agents for foreign  insurers with balance dates between October and  February will have incorrect use-of-money interest  (UOMI) calculations.

End-of-year tax for a company that doesn’t have  a fixed establishment in New Zealand and isn’t  considered to be resident in New Zealand is due and  payable on:

  • 7 February in the next income year, or
  • 7 April if the company is linked to a tax agent.

If you’re affected, please contact us and we will arrange a correction.

According to IRD, the correction  will take  “several weeks”.

April 15th, 2012