New Property Rules Receive Ascent

September 28, 2015 New Zealand Taxation

New rules will come into effect within days to ensure that incomes from property sales are properly taxed and that money used for property purchases is legitimate.

Late last week the two new Bills received Royal Assent, bringing into force new regulations regarding the requirements imposed and the taxation matters concerning the purchase and sale of property in New Zealand.

From October 1st, new rules will be enacted which will ensure that the sale of any property, barring an individual’s main home, will be subject to income tax, if the sale occurs within 2 years of the initial purchase of the home.

Also, the sale of any property will also carry with it the requirement to provide to Land Information New Zealand the IRD number of the parties involved, and, if a party does not have an IRD number, then the equivalent tax registration code from an overseas tax authority is to be provided.

Lastly, as part of the an ongoing effort to increase compliance with global standards regarding anti-money laundering, anyone purchasing a house will need to have a local bank account before being able to obtain a New Zealand IRD number.

Photo By: Mr Thinktank