New Zealand Doesn’t Need Capita Gains Tax
April 30, 2015 Taxation in New Zealand
WELLINGTON – New Zealand should not implement a capital gain tax yet, as a lack of taxation may nt be the cause behind the current rise in house prices.
In a statement issued on April 30th the New Zealand Property Investors Federation claimed that there is no need to implement a capital gains tax on property sales in the country, as the current tax system already does enough to tax property investors.
Over the course of recent years New Zealand has seen revived calls for a capital gains tax, especially in the face of the currently escalating housing prices in the country.
However, according to the New Zealand Property Investors Federation, under current regulations any profits made from the sale of a property by an investor or speculator will be attributed to the personal income of the investor, and subsequently charged at the marginal tax rate, which, in most cases will be the top rate of 33 percent.
The experts of the New Zealand Property Investor Federation recommended that the government not rush towards implementing a capital gains tax, and, instead, wait to determine the actual causes of current spike in housing prices.
Photo By: Mr Thinktank