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Report Templates - Trust tax rate 39% 2025 and 33% in comparatives in annual accounts tax note

The NZ tax rate for a trust's income tax has changed in the 2025 tax year from 33% to 39% when the taxable income in the trust is $10,000 or more.
At present we are not able to have a different formula in comparatives to the formula in current year, so a modification to the If( . . ) statement in the current annual accounts tax note cannot be made that would work for 2025 and comparatives.

At the moment the only solution available per Xero Support is a custom line, with accounting staff manually entering the tax payable amount calculated externally at 33% or 39%.

It would be great if the software engineers at Xero could implement a fix for this so that an if / then formula could be used that takes into account the tax year.

Thanks
Paul

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Paul Siddles shared this idea  ·   ·  Report…  ·  Admin →
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submitted  ·  AdminKelly Munro (Community Manager, Xero) responded  · 

Thanks for raising the idea with us here, community.

Currently, there's no functionality in Xero to have a single row have two different formulas for each column, or have two columns appear when grouped. (Example, the 2024 column cannot be calculated with 33% tax if the formula for the row is calculated with 39%)

Right now as Paul's noted 🙏, we'd recommend using a 'Custom' row in the Notes report and have the row heading be similar to 'Tax Payable (33% 2024, 39% 2025)'.

In doing so, you'll then be able to manually input the figures into this section of the notes report after you click 'Update layout'.

We don't have any immediate plans for developing this capability, but I want to assure you interest for this has been shared with our product team and we'll update you if there's any news.

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  • Gerard Dodd commented  ·   ·  Report

    Work around for the reports.
    Replace the formula with this:

    IF(Taxable Profit (Loss)>10000.99,Taxable Profit (Loss)*0.39,if(Taxable Profit (Loss)>0,Taxable Profit (Loss)*0.33,0))

    Delete the comparative column if LY profit is over $10,000

    or if you have a spare $750 + GST then:

    Report Right are running a $750 (excl) special to take care of updating your 2025 and 2026 trust tax notes for you.
    If you are interested, please contact Marney Price at marney@reportright.co.nz

  • Penny Gough commented  ·   ·  Report

    would have expected this to have already been included to keep up with the changing legislation.

  • Ruth Simmonds commented  ·   ·  Report

    This is an extremely important part of preparing financial reports for our clients.

  • Gerard Dodd commented  ·   ·  Report

    That's a great idea! Therefore it will never happen.