New Zealand’s Inland Revenue has released a draft Interpretation Statement (PUB00494) to clarify the tax treatment of money or property received by New Zealand tax residents from overseas, including inheritance. The document, issued on 5 May 2025, aims to guide how to assess whether such transfers are from a foreign trust and if they represent taxable income or distributions.
The statement outlines the criteria for determining if a person transferring money or property is a trustee of a foreign trust. It also explains the conditions under which a New Zealand tax resident might have tax obligations for amounts received from overseas, even if those funds are not classified as distributions from a foreign trust.
