IRD UOMI rates changed with effect from 8 May 2020 as follows:
- For underpayments of tax – decreased from 8.35% pa to 7.00% pa
- For overpayments of tax – decreased from 0.81% pa to 0.00%
A Use of Money Credit Interest Rate of 0.00% means that there will no longer be any credit interest paid where any credit is held with Inland Revenue. This includes KiwiSaver contributions paid to Inland Revenue before being passed on to Scheme Providers
The rates are reviewed regularly to ensure they are in line with market interest rates. They were last changed in August 2019. The new rates are consistent with the floating first mortgage new customer housing rate and the 90-day bank bill rate.
Source: Tax Pooling Solutions: May Update