Source: Inland Revenue Department –
Orders in Council updating certain rates were recently made. The paying rates for use of money interest has changed. The new underpayment rate is 7.28% (previously 7.00%). The overpayment rate remains at 0%. The rate of interest used to calculate interest on employment-related loans for fringe benefit tax purposes increases from 4.50% to 4.78%. The deemed rate of return used to calculate foreign investment fund income for the 2021–22 income year rises from 4.43% to 6.01%.
For more information on these, see:
- Special Report – Order in Council: Taxation (Use of Money Interest Rates) Amendment Regulations 2022
- Special Report – Order in Council: Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2022
- Special Report – Order in Council: Income Tax (Deemed rate of return on attributing interests in Foreign Investment Funds, 2021–22 income year) Order 2022
