The New Zealand Government has released statements in regards to a tax policy work program which aims to alter New Zealand taxation matters with the aim of raising New Zealand’s status in the world’s economy. There are a number of changes proposed in the taxation review, the most obvious of these is the previously mentioned 30/30/30 rule. This would see personal, company and trustee tax aligned to the maximum rate of 30%. Double taxation agreements are also on the plan, with updating ... Read More

The New Zealand Government has released discussion documents which call for comment on the current system, proposal for change, and invitation for system suggestions. Current imputation credit regulation allows for New Zealand shareholders to offset their income tax obligation with imputation credits attached to the dividends they receive from a New Zealand income tax paying company. These rules do not currently extend to tax-exempt entities or charities, as they have no income tax obligation which needs to be offset. As this means that ... Read More

According to information provided by the New Zealand Parliament, the New Zealand and Australian governments are working on mutual recognition of Imputation and Franking Credit. Under the current tax regulations, investors have to pay tax on any dividends earned in New Zealand or Australia. If the proposed recognition were to be adapted, investors and shareholders will be able to choose in which country they pay the tax on their dividends. The issue of double taxation on dividends has been raised for many years, and ... Read More