Taxation Bill Receives Urgent Amendment
November 24, 2009 New Zealand Taxation
A supplementary order paper was released on November 24th, with several proposed additions to the Taxation (Consequential Rate Alignment and Remedial Matters) Bill.
Peter Dunne, New Zealand Revenue Minister, announced the release of a supplement to the Taxation Bill, which is near its final stages of parliamentary approval. The first of the amendments involves GST on inbound tour packages, the second concerns non-resident withholding tax rate reductions, and the third involves superannuation portability. According to Peter Dunne, the remaining six changes are minor and remedial.
The first change clarifies that facilitation services for tour packages for overseas tourists will be levied with GST at the current rate of 12.5%. As a transitional measure, inbound tour operators will be able to zero-rate their services up to July 1st 2008. Peter Dunne stated that the second measure concerns reducing the withholding tax on non-portfolio dividends paid to non-residents to either 5% or 0%, circumstance dependant, from its current 15%. This section must be passed before new tax treaties with Australia, Singapore and the US can come into effect. The third change aims to alter current New Zealand law to fully reflect recent changes Australia-New Zealand superannuation portability agreements.