Recently, our Director, Connie Lui, did a recent podcast with Shiraz Waheed, a tax accountant based in Germany/UAE, re becoming a non-NZ tax resident. This podcast session covers the following areas: Becoming a non-NZ tax resident under NZ domestic tax law Requirements and process for becoming a non-NZ tax resident NZ tax obligations for non-NZ tax residents holding a NZ rental property Common misconception taxpayers have on becoming a non-NZ tax resident You can view the podcast below or via our youtube channel . If you are moving aboard and want to become a non-NZ tax resident, this is a p ..read more

Cross-border workers and businesses in NZ often find it challenging to navigate the NZ tax rules. If there are errors or oversights, it can be costly to remedy. To address this, NZ government introduced a new tax bill – Taxation (Annual Rates for 2022-23, Platform Economy and Remedial Matters) Bill (No 2) on the 8 September 2022. In this tax bill, one of the proposed changes affects employers and employees involved in cross-border employment arrangement and payers of non-resident contractor payment. This includes cross-border secondees, short-term business travelers, remote workers and indi ..read more

The government is extending three forms of financial support to businesses that have been heavily affected by recent Omicron outbreak. They are: Further COVID-19 support payment Top-up loan of NZD10,000 via the Small Business Cashflow Scheme Further flexibility on tax payment COVID-19 support payments Your business may be eligible if revenue has been affected by Phase 2 of the COVID-19 response. Here’s more information: At this stage, there are three fortnightly payments over 6 weeks, which will offer NZD4,000 per business plus NZD400 per full time worker, capped at 50 full time employee ..read more

We had an awesome turnout in our latest webinars, Strategies to combat interest limitation – New Builds, Development & Commercial. If you missed them or are interested in watching the webinars, you can view our Director, Connie, section of the webinars by clicking the links below. The full webinars is available on our website. Connie’s section  New Builds – https://youtu.be/_YEQaJ3eTRQ Residential Development – https://youtu.be/EzYGCssSHAo Commercial Property Investment – https://youtu.be/uMzLeseKaRo Full webinars You can find them at https://nztaxprop.co.nz/resources/webinar-re ..read more

With the new interest limitation rule, many residential property investors may not be able to deduct interest expense in the near future. Our 4 experts have organised a series of webinars to cover some strategies to combat the new interest limitation rule and consequently maintain or improve cashflow. Webinar 1 – Investing in new builds – 18 September 2021 at 10am to 11:30am Webinar 2 – Developing residential land – 23 September 2021 at 8pm to 9:30pm Webinar 3 – Transitioning from residential to commercial – 25 September 2021 at 10am to 11:30am You might have questions such as: – How to mai ..read more

Now, we are almost 2 weeks in since level 4 lockdown on 17 August 2021, more businesses (in particular commercial property investors) are certain the level of decrease in revenue qualifies for wage subsidy and/or resurgence support payment. We outline below the eligibility criteria of these COVID business support, tax treatment for these subsidies, wider government support for businesses and IRD’s use of money interest (UOMI), penalties and other types of relief. Wage subsidy For this round, the wage subsidy has changed slightly since it was last used in February. Key things to note are: Elig ..read more

New Zealand (NZ) has had an automatic exchange of information (AEOI) agreement with several countries for many years. In the past, they have usually been an under-used tool for identifying tax evasion and the under-declaration of income. Following the introduction of the Common Reporting Standard (CRS) effective from 1 July 2017, more information is being automatically shared across borders by various tax authorities worldwide. This means overseas assets and financial information are more transparent to the NZ Inland Revenue (IRD). AEOI and CRS give IRD a simple way to know whether NZ tax resi ..read more

On 10 June 2021, the Labour Government released a discussion document to seek public consultation over the next five-week regarding the new interest limitation and changes to the bright-line test rules. You can view a summary of the proposed changes here. Finance Minister Grant Robertson said the government’s goal for this proposal was to encourage more sustainable house prices by dampening investor demand for existing housing stock to improve affordability for first home buyers. The discussion document, Design of the interest limitation rule and additional bright-line rules, is quite lengthy ..read more

Over 50,000 Kiwis expats have returned home since the beginning of the outbreak. This is estimated to increase to between 250,000 and 500,000 in the next few years. With the introduction of the COVID vaccine, the numbers might decrease, but the trend is likely to continue for some time. Some expats may inadvertently bring back some tax headaches along with their return, especially where they still own overseas assets/properties and foreign investment vehicles. We have seen an increasing number of returnees facing double taxation and being confused with how much tax they actually owe and to whi ..read more

With significant increase in house prices over the last year, Government has announced a number of changes to combat this. The key changes are: Removing interest deductions for residential rentals Extending the Bright-Line Test from 5 years to 10 years, and other changes for the main home exemption. Investing $3.8 billion into housing acceleration funds Loosening income and price caps for first time buyers who plan on utilizing government assistance programs We expect these changes to have a greater impact on the residential property sector than the removal of depreciation in 2011 year and t ..read more