property tax tagged posts
July 4, 2016 New Zealand Taxation
The New Zealand Council for Infrastructure Development is calling for the cost of new housing developments to be passed to buyer, not developers.
In a press release on July 4th the New Zealand Council for Infrastructure Development (NZCID) called on the government to implement a plan for the payment and collection of funds from the newly announced $1 billion interest free housing infrastructure loan.
Over the weekend the government announced its new program which would grant loans to local councils to pay for infrastructure developments to new residential property areas.
The NZCID cautioned that if “development levies” were used to pay for the loans, land developers would end up facing higher risks, and, ultimately, passing on the risks in the form of higher prices to buyers.
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
May 18, 2015 New Zealand Taxation
Property investors will now be eligible to pay tax for any capital gains made from the sale of their investment property.
Over the weekend the government announced that new rules will be instated regarding the taxation of the sale of investment properties, in an effort to help control the upward spiralling property market.
Under the new regulations any profits earned from the sale of investment property within two years of its original purchase will be taxed at the seller’s marginal tax rate.
The new regulations are intended to work in tandem with currently active rules stating that profits made from the sale of properties by a professional investor, or anybody trading property for profit, shall be taxed at their own tax rate.
Alongside the new rules, additional regulations were establ...Read More