Skip to main content

IS 23/04 FS The interest limitation rules and short-stay accommodation

02 Jun 2023 Fact sheets / 2023
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.

IS 23/04 The interest limitation rules and short-stay accommodation

02 Jun 2023 Interpretation statements / 2023
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.

Vol 35 No 5 TIB June 2023

30 May 2023 TIB / Volume 35 - 2023

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 

NAMV 2023 National Average Market Values of Specified Livestock Determination 2023

23 May 2023 Determinations / Livestock / Average market value

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

QB 23/06 GST – goods purchased on deferred payment terms

22 May 2023 Questions we've been asked / 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.

BR Prd 23/01 Fonterra Co-operative Group Limited

15 May 2023 Rulings / Product / 2023
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.

BR Pub 23/07 Income tax – application of the employee share scheme rules to employer issued cryptoassets provided to an employee

15 May 2023 Rulings / Public / 2023

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.

 

BR Pub 23/04 Income tax – salary and wages paid in cryptoassets

15 May 2023 Rulings / Public / 2023

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.

BR Pub 23/05 Income tax – bonuses paid in cryptoassets

15 May 2023 Rulings / Public / 2023

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.

BR Pub 23/06 Income tax – employer issued cryptoassets provided to an employee

15 May 2023 Rulings / Public / 2023

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.

 

More

Public advice and guidance work programme 2023-24

Each year the Tax Counsel Office prepares a programme of public guidance work for the following year.

If you are aware of any tax technical or interpretative issues you think we should publish guidance on, please let us know by 6 June 2023.

The criteria for inclusion in the programme include the importance of the issues involved, the level of uncertainty/ambiguity, the number of customers potentially affected, and the potential revenue implications. 

Find out more about how to make a suggestion.

Consultations closing soon

PUB00397-1: Income tax - bright-line main home exclusion - renting to flatmates

PUB00397-2: Income tax - deductibility of expenditure - renting to flatmates

These consultations close on 13 June 2013 

PUB00423: GST - Court awards and out-of-court settlements

This consultation closes 14 June 2023

Consultation items - tell us what you think

We value your feedback and have made the following improvements to make it easier for you to send in comments or suggest topics of interest.

  • A new tab for our work programmes
  • A single tab where you can find current draft items, plus expired items that are under review
  • An email button on each consultation page so you can easily send in your feedback

Newsletter subscription service 

Find out about our subscription service