Monthly Archives June 2015
June 24, 2015 New Zealand Taxation
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 seller of property in New Zealand are required to provide their IRD number at the time of the sale.
Any individuals who are not residents of New Zealand will need to provide their tax registration number in their home jurisdiction.
Further, new requirements will also be enacted to ensure that any applicant for a new IRD will be required to provide details of their New Zealand bank account.
The requirement to provide an IRD number will only be waived for the...Read More
June 8, 2015 New Zealand Taxation
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 on the housing market will have an effect, but it is not yet known when those effects will kick in.
He said that as a large number of property investors hold their acquisitions for more than two years, they will not feel the effect of the upcoming rules regarding the taxation of capital gains made from the sale of property.
He added that the new rules regarding the restriction of lending to properties in Auckland will have some effect on price...Read More
June 4, 2015 New Zealand Taxation
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 that the changes will have the most significant effect in the Auckland region.
It was shown that in Auckland approximately 15 percent of the 31 000 property sales were properties which had been held for 2 years or less, while across New Zealand as a whole the percentage was only approximately 10 percent.
Further it was noted that a significant portion of the sales across the country would not qualify for the tax, as they are the seller’s primary residential proper...Read More