Government Proposes Offshore Property Withholding Tax

The government is cracking down on property speculation by foreign investors by proposing a withholding tax on such sales. On August 31st the Inland Revenue Department released an issues paper on proposed new rules for collection income taxes for profits obtained by offshore residents selling property in New Zealand. Under the proposed rules, foreign sellers […]
 

Netflix Likely to Become Reality in New Zealand

The government is taking a close look at the feasibility of charging GST online digital purchases, even if the supplier is not based in New Zealand. The Revenue Minister Todd McClay has released a new discussion document, calling for public input on the proposal to implement GST on the purchase of intangible digital goods purchased […]
 

Working for Families Loses Focus

The Working for Families system has lost focus, and is no longer doing enough to help families. The Working for Families Scheme has slowly transformed away from supporting families with low-incomes and into a system which forces families to enter the workforce, according to the Child Poverty Action Group. The Group claimed that over the […]
 

GST Threshold May be Dropped

Online purchases made by New Zealanders could soon be significantly more expensive as the government looks at dropping the GST-free threshold. Earlier this month the Prime Minister John Key indicated that the threshold for GST on online purchases may be reduced to as low as NZD 20, or even be abolished entirely. The Prime Minister […]
 

IRD Issues More Refunds

The IRD has issued almost NZD 50 million mre in tax refunds this year compared to last year. Last week the Inland revenue Department issued a new statement providing details on the increasing number of taxpayers who are opting to use the IRD’s online services, and, subsequently, leading to a greater number of tax returns […]
 

new Property Tax Bill Introduced

New regulations have been introduced to ensure that the sale of property is taxed properly. On June 23rd the Taxation (Land Information and Offshore Persons Information) Bill was introduced with the aim of tightening the regulation and taxation regarding the purchase and sale of property. Under the details of the new bill, any buyer or […]
 

New Property Rules May Lower Houses Prices Eventually

The government’s upcoming rule changes may have a positive effect of property availability, but they fail to tackle the issue of housing supply or to incentivize first-time buyers. In a recent online interview the managing director of Barfoot & Thompson Peter Thompson suggested that the measures being taken by the government to ease the conditions […]
 

Capital Gains Tax Applies to Only 4 800 Sales

The upcoming capital gains tax is not likely to raise more than NZD 70 million per year, with property sales in Auckland being hit the hardest. Last week the consultancy firm CoreLogic released a report on the potential effect of the upcoming regulations regarding the taxation of capital gains from the sale of property, showing […]
 

Government Toughens Stance on Property Gains

Property investors will now be eligible to pay tax for any capital gains made from the sale of their investment property. Over the weekend the government announced that new rules will be instated regarding the taxation of the sale of investment properties, in an effort to help control the upward spiralling property market. Under the […]
 

New Zealand Won’t Rush into Online GST

New Zealand will wait to see if Australia can effectively implement a GST on intangible online goods before evaluating the feasibility such a measure for New Zealand. The Finance Minister Bill English has stated that the government will not rush into copying the updates the GST recently announced in Australia. Australia now plans to amend […]