NZ Tax Agency Guides Firms On Reporting Gifted Shares
New Zealand's Inland Revenue has issued guidance on determining the taxable value of shares received by an employee under a share purchase agreement (SPA).
On April 1, 2017, new rules came into force requiring employers to report the value of any share benefit received by an employee under an SPA in the relevant employer monthly schedule (EMS) for which the share benefit arises.
The new rules, which were introduced in an amendment to the Income Tax Act 2007, also allow employers to elect to withhold Pay As You Earn (PAYE) on share benefits received by employees.
To comply with the new obligations, an employer will need to determine the value of the share benefit received by each employee under an SPA.
The guidance provides advice on valuation methods and the information companies should retain under the new rules.