withholding tax tagged posts

Government Proposes Offshore Property Withholding Tax

August 31, 2015 New Zealand Taxation

The government is cracking down on property speculation by foreign investors by proposing a withholding tax on such sales.

On August 31st the Inland Revenue Department released an issues paper on proposed new rules for collection income taxes for profits obtained by offshore residents selling property in New Zealand.

Under the proposed rules, foreign sellers will face a withholding tax when selling property, with a portion of the sale proceeds to be held by a lawyer, or conveyance agent, to be remitted to the IRD.

The amount to be withheld will be the lower of 10 percent of the sale price, or 33 percent of the sale price minus the original purchase price.

Some concession will be made if losses are incurred by the seller due to improvements made to the home.

The proposed withholding tax is ...

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NZ-Australia DTA Come into Force

March 22, 2010 International FinanceInternational TaxationNew Zealand FinanceNew Zealand Taxation

The Seat of GovernmentThe Double Taxation Agreement (DTA) between Australia and New Zealand has come into force and will be applied with the new financial year, having been passed into legislature by both Governments.

After much public anticipation the New Zealand Government released a media statement on March 22nd announcing that New Zealand and Australia have given legal effect to the DTA and passed legal notes which to that effect, allowing the agreement to come into effect soon. The newly established withholding rates will apply from May 1st 2010 onwards, and all other changes will begin on April 1st.

Under the now-established tans-Tasman agreement tax-free pensions from one country will remain exempt if the recipient moves to the corresponding nation...

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NZ-Australia DTA One Step Closer

February 18, 2010 International TaxationNew Zealand Taxation

United Future AnnouncementThe upcoming Double Taxation Agreement (DTA) between New Zealand and Australia has taken one step towards to coming into effect after a Governmental signing of an Order of Council for the document.

The New Zealand Government has begun to incorporate the DTA into the country’s law system through a signing of an Order in Council on February 17th, according to Peter Dunne, New Zealand Revenue Minister. Once the legal incorporation is complete for both nations the DTA will come into full effect. Australia is yet to commence their respective ratification process. Changes within the DTA are expected to begin in late 2010, two months after the expected conclusion of both countries’ ratification process.

The DTA which was a product of more than a year’s worth of negotiations was signed on June ...

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New DTA Between Australia-NZ

June 30, 2009 International FinanceInternational TaxationNew Zealand FinanceNew Zealand Taxation  No comments

The signing of a new Double Taxation Agreement (DTA) between Australia and New Zealand has taken place.

On the 29th of June New Zealand Trade Minister Tim Groser signed the new agreement on behalf of New Zealand in a Paris based ceremony. There is no date set yet to its enforcement as in it needs to be legally enacted in both countries. In New Zealand this will happen by the Order of the Council, which is expected to occur later in 2009.

The key changes in the new DTA, according to Tim Groser, are lower withholding taxes on dividend and royalty payments between Australia and New Zealand, changes to pension payments, and overall reduced compliance costs.

In the new DTA the standard withholding tax rate on dividends will be 15%, but, 5% for an investing company has at least a 10% shareholdi...

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