PIE tagged posts

PIE Rules to Change for Foreign Investors

April 6, 2011 New Zealand Taxation

PIE Rules to Change for Foreign InvestorsNew Zealand is looking set to welcome new foreign investors, as the government changes the tax treatment of non-residents investing in New Zealand Portfolio Managed Entities, bringing the country one step closer to becoming to becoming an international financial service hub.

In December 2009 the government’s Capital Market Development Task Force released its final report, in which it was suggested that the country should pursue the roll of a high-value exporter of back- and middle-office financial services for the international fund management industry. The prospect was reiterated on February 10th 2010 by John Key, in a speech during which he revealed his aim to turn the country into an international financial service hub...

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New Zealand Budget Released

May 20, 2010 New Zealand Taxation

BeehiveThe New Zealand Government has released its 2010 Budget. The announcement outlines various changes to the taxation system, putting to rest months of media speculations surrounding New Zealand’s tax future.

On May 20th the New Zealand Government revealed its national budget for the year 2010. The latest budget aims to reduce the impact of last year’s recession while introducing a range of fiscal stimulus measures and providing a solid base with which the Government can maintain control of the nation’s economy.

The Budget announcement revealed a number of significant alterations to New Zealand’s tax system. As expected by most economists, the Government has confirmed that the Goods & Service Tax (GST) rate will be raised to 15 percent from the current rate of 12.5 percent.

The increas...

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NZ Investigates Taxation of Foreign-Owned PIEs

April 16, 2010 New Zealand Taxation

Wellington, New ZealandA new issues paper has been released, seeking views on two possible legislative changes concerning the tax treatment of non-residents investing in portfolio investment entities (PIE).

On April 14th Peter Dunne, New Zealand Revenue Minister, announced the release of Allowing a zero percent tax rate for non-residents investing in a PIE, an official New Zealand Government Issues Paper. The release of the paper is spurned by the International Fund Services Development Group (IFSDG), which was formed in April 2010 to advise the New Zealand Government on the changes required to create an international fund-service sector in New Zealand...

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RWT on PIE and Interest to be Changed

July 8, 2009 New Zealand FinanceNew Zealand Taxation  No comments

The Resident Withholding Tax rates on portfolio investment entities and interest are to be changed and aligned with personal rates and the 30% company tax rate.

Revenue Minister Peter Dunne announced on the 7th of July that as part of an upcoming taxation bill. There is no set date for the bill, as of yet, beyond later this month, although it is expected that it will pass in December. The announcement was made now so that financial institutions and banks have plentiful time to make required changes to implement the new bill.

The Resident Withholding Tax (RWT) on interest is calculated via the marginal tax rate of the recipient. As the marginal tax rates have changed, the RWT should also...

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