IRD to Ease Superannuation Transfer Rules

February 20, 2014 New Zealand Taxation

Superannuation savingsThe IRD has eased the rules on superannuation transfers, allowing more Kiwis to take advantage of limited tax concession.

In a statement issued on February 18th the Inland Revenue Department said that a new proposal has been put forward to amend the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill to make it easier for New Zealanders to bring back their superannuation savings from another country.

Under the rules of the current Bill, individuals transferring funds from an overseas superannuation scheme to a local superannuation scheme are liable to pay taxes based on the returns granted by the overseas provider.

The bill also granted a concession to individuals who made completed a withdrawal from an overseas scheme between January 1 2000 and March 31 2014, allowing them to pay a flat rate of 15 percent on the funds transferred.

The new amendment extends this time, allowing it to apply to transfers which were requested before April 1st 2014 but not processed and completed at that time.

By: Simon Cunningham