New Zealand Funding Increased Tax Compliance Drive
The Inland Revenue Department (IRD) is to receive an additional NZD132m in government funding over five years to increase its tax compliance drive. Some of this is for investing in compliance enforcement, while some will cover tax that must be
See MoreDTA between New Zealand and Vietnam enters into force
A new double tax agreement (DTA) has been signed by New Zealand and Vietnam. The agreement which came into force on May 7, 2014 is part of a plan to increase the trade between the two countries. The agreement is designed to encourage cross-border
See MoreNew Zealand’s Compliance Activities Paying Dividends
In New Zealand the Revenue Minister has said that every dollar spent in efforts to combat tax evasion in the ‘hidden economy’ raised NZD5.60 last year. At the OECD conference on “Cash and Hidden Economy” the Prime Minister informed the
See MoreNew Zealand’s opposition party welcomes the launch of FTA talks with the EU
In New Zealand an opposition party has welcomed the launch of free trade talks with the EU but has called on the Government to address tax barriers to domestic economic activity. Reacting to NZ-EU FTA negotiations, the leader of the opposition ACT
See MoreNew Zealand: New rules for determining tax residence
In New Zealand the Inland Revenue Department has issued an “interpretation statement” on tax residence. This is an update to previous guidance from 1989. The new statement takes effect from 1 April 2014 and includes residence criteria for
See MoreNew Zealand and EU consider Free Trade Agreement
New Zealand and the European Union are considering possibilities for updating their trade and economic relations. As part of this process they are looking at the possibility of concluding a free trade agreement. The leaders of the EU met with New
See MoreNew Zealand and China set new trade goals
New Zealand and China have agreed to update their free trade agreement with the objective of increasing mutual trade to reach a value of USD 30 billion by the year 2020. This follows two meetings in the past year between the New Zealand Prime
See MoreNew Zealand: Plans for an active income exemption for branches are to be deferred
On 14 March 2014, New Zealand’s Minister of Revenue stated that consideration of an active income exemption for branches is to be deferred for the time being. The reason for the deferral is to allow the government's main tax policy focus to be
See MoreNew Zealand: Changes to Financial Reporting Requirements
The Financial Reporting Act, which changes financial reporting obligations for most companies, comes into effect on 1 April 2014. Small and medium-sized companies in New Zealand will need to make sure they understand how the changes made by the
See MoreNew Zealand: Convention on tax assistance enters into force
From 1st March 2014, the multilateral Convention on Mutual Administrative Assistance in Tax Matters will become effective for New Zealand. The Convention, which New Zealand ratified in November, will greatly enhance the country’s ability to combat
See MoreNew Zealand: 15 Percent Superannuation Tax Option
New Zealand resident individuals will have increased options if they decide to transfer their foreign superannuation before 1 April 2014. Previous rules enabled a “15% option” for those who made a lump-sum withdrawal or a transfer to another
See MoreDTA between New Zealand and Papua New Guinea entered into force
The new double tax agreement between New Zealand and Papua New Guinea entered into force on 21 January 2014. The agreement was originally signed on 29 October 2012. Under the terms of the agreement the maximum withholding tax on dividends is 15%,
See MoreDTA between New Zealand and Papua New Guinea
The double taxation avoidance agreement between New Zealand and Papua New Guinea entered into force on January 21, 2014. For withholding taxes the agreement takes on effect from March 1, 2014. As far as other provisions of the agreement, in New
See MoreDTA between New Zealand and Papua New Guinea entered into force
On Monday, February 10, 2014 the New Zealand Revenue Minister announced that a new double tax avoidance agreement between New Zealand and Papua New Guinea is now in force. The agreement contains a provision on the exchange of tax information in
See MoreNew Zealand: Welfare Reforms will reduce costs
The costs to the taxpayer from benefits have fallen due to benefit reforms. The latest valuation current lifetime liability of the New Zealand welfare system estimates the liability at NZD76.5bn, a fall of NZD10.3bn. The saving came from having
See MoreNew Zealand: Non-residents must register for GST from April 2014
The New Zealand Inland Revenue Department has set out mandatory requirement for non-resident taxable persons to register for the Goods and Services Tax (GST) from 1 April 2014 if they provide local taxable supplies. The criteria to meet to register
See MoreTreaty between New Zealand and Japan entered into force
The double tax agreement (DTA) signed between New Zealand and Japan on December 10, 2012, will become effective in New Zealand, for withholding taxes from January 1, 2014, and for income taxes for income years beginning on or after April 1, 2014.
See MoreNew Zealand’s tax developments in 2013
Tax and policy developments in New Zealand for the year of 2013 were: Distributed the OECD tax “action plan” in response to concerns around profit shifting by multinationals, launch of the legislation containing changes to the tax treatment of
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