PKF BOI Update: Tax Changes, Insights & More

Kia ora,

As we move through another busy period, it’s clear that the business landscape continues to evolve, with new tax rules, planning opportunities, and compliance changes all shaping the way we operate.

In this edition, we’ve highlighted key legislative updates, Inland Revenue insights, and practical opportunities to help you stay informed and make confident decisions.

If anything in this newsletter raises questions or you’d simply like to discuss your situation, our team is here to help.

Ngā mihi nui,
Ann-Maree Kingi
PKF Bay of Islands

Staff Updates

Say Hello to Wendy

Some of you may recognise Wendy, she has rejoined the PKF Bay of Islands team as an Accountant.

Wendy brings many years of experience in the industry and a wealth of knowledge that she looks forward to sharing with our clients.

When she’s not in the office, Wendy enjoys fishing, going to the gym, and spending time with whānau and friends.

We’ve celebrated birthdays for Islay and Ann-Maree

Islay recently attended the Sublime concert, which was a great experience.

Ann-Maree and her family attended the Anzac Memorial, a special and memorable occasion for their family.

2025–2026 Annual Rates Act Now in Force

The Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Act 2026 came into force on 29 March 2026, introducing targeted changes to improve compliance, encourage investment, and modernise tax rules.

Here’s a snapshot of what’s changed:

Foreign investments (RAM method)
Eligible migrants and returning residents can now be taxed on actual gains from foreign shares
Non-resident visitors (digital nomads)
Overseas workers may be able to work remotely from NZ without triggering tax
Employee share schemes (ESS)
Tax can be deferred until shares are sold or realised
Infrastructure investment
Improved interest deductibility to support large-scale projects
FBT and employee payments
Greater clarity around gift cards and reimbursements
Excess solar power
Income from residential excess solar is now tax-free
Student loan relief
Increased flexibility for reducing/cancelling interest for overseas borrowers
GST & administration
Simplified rules and expanded IRD information-sharing

What this means for you

While not a major overhaul, these changes create practical opportunities — from improved tax outcomes to reduced compliance burden.

We’ll unpack these further in upcoming editions. If any of these changes may impact you, please get in touch with your PKF adviser.

Email the team

Inland Revenue Focus - Do you have outstanding tax debt?

Inland Revenue has extended tax pooling for eligible income tax debt for the 2023 and 2024 tax years.

This means you may be able to:

Settle tax debt outside of IRD

Reduce interest and penalties

Talk to us about whether tax pooling is suitable for you.

Trust Review Opportunity

Many trusts have not been reviewed since the Trusts Act 2019, despite:

- Changing family or financial circumstances

- Increased IRD disclosure requirements

A review can help ensure your trust:

- Remains compliant

- Still meets your objectives

- Is tax efficient

- Minimises risk

UK Pension Transfers

If you’ve worked in the UK and have a pension, recent rule changes may affect you.

New rules (effective 1 April 2026) introduce “Scheme Pays”, allowing NZ tax to be paid directly from the transferred pension at a flat 28% rate.

Key considerations:

- Tax rates may differ depending on your income

- Timing of transfer impacts taxable portion

- UK tax implications may also apply

Example Outcome:

- Paying personally: 39% tax rate

- Scheme Pays: 28% tax rate

- Potential tax saving: $6,043 (on $200,000 fund example)

Your options include:

- Transferring to an NZ scheme (QROPS)

- Withdrawing as a lump sum

- Leaving funds in the UK