Rules for employer-provided travel to distant workplaces clarified
New operational statement OS 19/05 clarifies and simplifies the tax rules around employer-provided travel to distant workplaces.For example, a person who works in Wellington but lives in Auckland, or who travels greater distances in working from home or at multiple workplaces.
It sets out the Inland Revenue Department's (IRD) approach to determining whether or not employer-provided travel to a distant workplace is exempt from income tax (PAYE) or fringe benefit tax (FBT).
It is recognised that some taxpayers may need time to implement the approach set out in OS 19/05.
The IRD does not expect taxpayers to apply the statement to travel taken before 1 April 2020.
However, taxpayers can apply the statement from the date it is issued if they wish to.