This fact sheet accompanies interpretation statement IS 23/04. IS 23/04 considers how the interest limitation rules apply to interest incurred for property used to provide short-stay accommodation. It also explains what other income tax rules may be relevant to any interest that’s deductible. This fact sheet gives an overview of the rules relevant to your interest deductibility and refers you to the part of IS 23/04 that provides more detail about the rules relevant to your circumstances.

This Interpretation statement considers how the interest limitation rules apply to interest incurred for property used to provide short-stay accommodation. It also explains what other income tax rules may be relevant to any interest that is deductible, depending on your circumstances. This Interpretation statement explains how the rules apply to natural persons and trustees only.

New legislation

• SL2023/0048 – Order in Council – Tax Administration (Extension of Due Dates) Order 2023

Operational statements

• OS 23/01: When employee allowances for additional transport costs for home to work travel are exempt from income tax
• OS 19/04 (KM 2023) Kilometre rates for the business use of vehicles for the 2023 income year

Legislation and determinations

• 2023 Consumer Price Index adjustment to standard-cost amounts for household services (childcare, boarding services or short-stay accommodation)
• 2023 Adjustment to the Square Metre Rate amount

Interpretation statements

• IS 23/02: Income tax – Application of the s CZ 39 5 year bright-line test to certain family and close relationship transactions
• IS 23/03: GST – Section 58: Specified agents of incapacitated persons, and mortgagees in possession

Question we’ve been asked

• QB 23/05: Provisional tax – impact on salary or wage earners who receive a one-off amount of income without tax deducted

Technical decision summaries

• TDS 23/04: Losses carried forward and debt remission income 
• TDS 23/05: In-specie distribution of assets upon winding-up of a unit trust
• TDS 23/06: Deductibility of payment to settle legal proceedings
• TDS 23/07: Whether expenditure to resolve weathertightness issues is deductible 

This determination establishes the national average market value (NAMV) of specified livestock for 2023.

 
This Question We’ve Been Asked explains when a person registered for GST on a payments basis can claim an input tax deduction for goods purchased on deferred payment terms.

The Arrangement is the operation of the Fonterra Shareholders‘ Fund (FSF). The FSF is a New Zealand–resident unit trust through which non–milk-supplying investors (Public Investors) and farmers supplying milk to Fonterra (Supplying Shareholders) can invest in Units. Units in the FSF give economic rights in Fonterra shares (Shares), but do not give Unit Holders any legal interest in the Shares.

This ruling considers when the provision of cryptoassets to an employee will constitute an employee share scheme in respect of which an employee derives a taxable benefit that is employee income under s CE 1(1)(d).

This item replaces BR Pub 19/04: Income tax - application of the employee share scheme rules to employer issued crypto-assets provided to an employee. There have been no changes to the original ruling.

 

This ruling considers when employee remuneration paid in cryptoassets will be a “PAYE income payment” for income tax purposes under s RD 3 for which the payer of the cryptoassets will have PAYE obligation.

This item replaces BR Pub 21/01: Income tax - salary and wages paid in crypto-assets. There have been no changes to the previous ruling.

This ruling considers when a bonus or an incentive paid in cryptoassets will be a “PAYE income payment” for income tax purposes under s RD 3 for which the payer will have PAYE obligations.

This ruling replaces BR Pub 21/02: Income tax - bonuses paid in crypto-assets. There have been no changes to the previous ruling.

This ruling considers when cryptoassets issued by an employer and paid to an employee will be a fringe benefit, how the benefit is valued and the time at which the benefit is provided.

This item replaces BR Pub 19/03: Income tax - employer issued crypto-assets provided to an employee.  There have been no changes to the original ruling.