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IRD introduces new tax rates 23 Dec 2010
The Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 introduces changes to secondary tax rates and new calculations for extra pays/lump-sum payments, effective from 1 April 2010.
 
New RWT, secondary tax, RSCT and extra pay rates from 1 April 2010
$0 – $14,000
12.5%
 
$14,001 – $48,000
21%
 
$48,001 – $70,000
33%
 
$70,001 and over
38%
 
Current RWT deductions at the rate of 19.5 % will automatically be moved to the new 21% rate – employees with an expected income under $14,001 or over $48,000 should change their RWT rate accordingly. Incorrect RWT rates might lead to unwanted tax bills.
 
New secondary tax codes and thresholds from 1 April 2010
$0 – $14,000
Tax code (no student loan): SB
 
$14,001 – $48,000
Tax code (no student loan): S
Tax code (with student loan): S SL
 
$48,001 – $70,000
Tax code (no student loan): SH
Tax code (with student loan): SH SL
 
$70,001 and over
Tax code (no student loan): ST
Tax code (with student loan): ST SL
 
Employees can change their secondary tax codes by obtaining a Tax code declaration form (IR330) from their employer. If you use payroll software, these new rates should be incorporated into your payroll package for pay periods ending on or after 1 April 2010.

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