NZ Tax - Prevent return finalisation when PIE exceeds what's claimable In a non resident return it would be good if Xero could prevent final
NZ Tax - Prevent return finalisation when PIE exceeds what's claimable
In a non resident return it would be good if Xero could prevent finalisation of the return where the PIE tax credit is in excess of what is claimable under the Tax on Taxable Income/Taxable Income x PIE Income formula. Thanks
Natasha Solanki
shared this idea
Hi Natasha, thanks for sharing your feedback on this idea. Our Community team has reviewed this idea and we're moving it to Feedback status, as there is an error message that alerts the filer that there is an issue with the PIE tax credit. We encourage you to continue sharing your experiences and voting on ideas that matter to your practice.
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Kathryn Pinkerton
commented
Agree these returns should not show that there will be a refund of PIE credits. We usually just don't include PIE income in non-resident tax returns, as there is no point. The only time would be if the PIR was 10.5% and the client's basic tax rate was higher than this.
The IR3NRG says to put it in the return if the PIR was less than 28%, AND attach a note to the return (which we can't do, so need to send a web message to IRD instead).
From experience, if you do advise IRD of the PIE income, their system won't allow a refund of PIE credits (which is correct, so you definitely don't want a tax statement going to a client showing that this will be refunded.)
Note - if you file a non-resident return online, the PIE income and PIE credits go in the "other income" section of the return.