Category Taxation in Asia-Pacific

NZ Retirement Savings Overtaxed, Claims Expert

October 11, 2017 Taxation in New Zealand

Kiwisaver taxationWELLINGTON – Property investors in New Zealand are seeing tax liabilities which are only a fraction of those paid by people saving for their retirement.

In a statement issued on October 10th, Peter Neilson, the former chief executive of the Financial Services Council of New Zealand, called for a rethink of the taxation of the country’s retirement savings system, KiwiSaver.

KiwiSaver is a nationwide retirement savings system, whereby a percentage of an employee’s pay is deducted from their wages and invested into a managed fund.

Over the previous financial year, approximately NZD 25.4 million was invested in the default funds assigned to taxpayers upon entry into KiwiSaver, and a further NZD 140.8 million was deposited into funds which were specifically chosen by the saver.

Currently,...

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Taxes an Election Hot Topic in New Zealand

September 15, 2017 Taxation in New Zealand

Tax in New ZealandWELLINGTON – The elections in New Zealand are heating up, and taxation is shaping up to be an increasingly important issue.

On September 14th the New Zealand Labour Party stated that it would not implement any new taxes in the country until at least 2021.

The Labour Party is the current opposition party, which has been attempting to oust the ruling National Party.

However, the Labour Party has been facing criticism for their lack of concrete tax plan and their promise to launch a working group which will evaluate whether any tax changes should be implemented in New Zealand.

Now the party has confirmed that the working group will still be formed, however, any changes suggested by the group will not be enacted until the next national election in 2021.

However, the party will still continue w...

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Potential Capital Gains Tax Discussed in New Zealand

September 7, 2017 Taxation in New Zealand

Capital gains taxWELLINGTON – New Zealand’s opposition party is drip-feeding the country more details on its proposed tax on housing and property.

In the run up to the national election in New Zealand, the focus is shifting to the prospect of the introduction of a tax on land or the capital gains from the sale of the property.

New Zealand has seen significant and persistent upwards movement in the price of the property, leading some to label the situation as a “housing crisis”.

The current leader of the opposition Labour party, Jacinda Arden, has suggested that her party will implement a capital gains tax or a land tax to address the issue.

However, previously she had not committed to the nature of the tax or to whether the tax will include taxpayers’ prime place of residence.

She has now confirmed ...

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Sedans May See tax Break in Indonesia

August 15, 2017 Taxation in Indonesia

Sedan taxJAKARTA – Indonesia is mulling cutting taxes on sedans in order to boost the national car market, while potentially also enticing manufacturers to move more production to the country.

On August 14th an official at the Ministry of Finance of Indonesia Goro Ekanto said that the tax rate applied to sedans may be dropped from the current level of 30 percent to 40 percent.

The rate varies based on the engine capacity of the car, with vehicles of over 1.5 litres seeing a tax of 40 percent, while those with smaller engines faced the reduced rate of 30 percent.

Comparatively, multi-purpose vehicles face a tax rate of 10 percent to 20 percent.

Indonesia has the biggest market for cars in Southeast Asia, with approximately 1.1...

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Cigarette Taxes Lead to Robberies

August 8, 2017 Taxation in New Zealand

taxes on cigarettesWELLINGTON – The spike in break-ins in New Zealand has been linked to taxes on cigarettes, and the situation does not look set to improve.

British American Tobacco has suggested that the steady increases in the taxes charged on the sale of cigarettes in New Zealand could be the reason behind the recent spike in robberies around the country.

Currently, approximately 75 percent of the cost of cigarettes in New Zealand is comprised of taxes, with the average cost of a pack of 20 sitting at NZD 23.40.

Only 5 years ago the average price was approximately NZD 14.50.

The 60 percent increase has been blamed for the recent spike in robberies and break-ins, especially in cases where small corner stores were the victims.

New Zealand has raised taxes on cigarettes by 10 percent per year for the las...

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