A new top tax rate of 39% will apply on personal income in excess of $180,000 for the 2021-2022 and later tax years.
For most tax payers this will start on 1 April 2021.
The top rate for resident withholding tax (RWT) paid on interest and dividends will also be increasing to 39%. Banks have until 1 October 2021 to update RWT rates so customers at this new tax rate should update their bank at that time.
More information will be released by Inland Revenue by 1 April 2021. In the meantime, detailed information about the Introduction of Taxation (Income Tax Rate and Other Amendments) Bill can be found here.
Please contact our team if you have any questions or concerns.
