Category Taxation in New Zealand
February 16, 2017 Taxation in New Zealand
In a speech given on February 16th the Finance Minister of New Zealand Steven Joyce said that in the upcoming budget the government will be looking to lower personal income taxes and implement new tax system on roading.
The Minister did not reveal the exact extent of the tax cuts that he hopes to implement, but did say that it is the government’s goal to ease the tax burden faced by middle- and low-income earners as soon the as the government’s own fiscal position allows.
New Zealand’s fiscal position has been steadily improving over the last few years, with the national debt-to-GD ratio set to fall to 20 percent by 2020.
The current Nationa...Read More
February 13, 2017 Taxation in New Zealand
The New Zealand Shipping Federation has recently spoken out against taxation rules, which, it claims, are unfairly putting local shipping operators at a disadvantage.
Currently New Zealand has an Emissions Trading Scheme which sees oil fuel companies buy carbon credits to pass on to clients.
It was claimed that the Emissions Trading Scheme ultimately costs operators as much as NZD 250 000 per ship.
However, foreign ships which visit New Zealand and only make one or two stops are exempt from the tax, despite the fact that they do complete deliveries within the country.
According to the New Zealand Shipping F...Read More
October 14, 2016 Taxation in New Zealand
On October 14th the government of New Zealand announced that over the year ending June 2016 the country saw a surplus of NZD 1.8 billion, as tax revenues rose above expectation while expenses were lower than previously forecast.
The government showed that over the 12 months Core Crown Tax Revenues grew by NZD 3.8 billion compared to last year, while Core Crown Expenses grew by a comparatively smaller NZD 1.6 billion.
While announcing the surplus the Minister of Revenue Bill English indicated that reducing sovereign debt was the primary goal for the government, but indicated that the newly found revenues also open up some extra spending opportunities which were not previously realistic.
October 11, 2016 Taxation in New Zealand
On October 11th the Prime Minister of New Zealand reiterated the government’s stance that no new taxes will be implemented on the purchase or sale of properties held by foreign investors.
The Prime Minister’s statement came after a renewed call for a tax on investment by foreigners by the newly elected Mayor of Auckland, Phil Goff.
The Prime Minister explained that if the intention of a tax on investment by non-residents was to dampen the demand for housing, then the tax would not have a significant effect, as the tax would not target the right demographic.
John Key added that if the Mayor wanted to see an improvement in the affordability of housing in Ne...Read More
September 30, 2016 Taxation in New Zealand
From October 1st New Zealand will begin levying the so-called “Netflix Tax” on the cross-border purchase of remote services and intangibles.
The “Netflix Tax” is not a new tax, but is an extension of the existing GST system to encapsulate online purchases which were previously exempt from the tax.
From October onward, all overseas retailers who sell at least NZD 60 000 worth of intangible goods and services to New Zealand taxpayers will be required to register for GST in New Zealand, and collect the 15 percent tax on all purchases.
Retailers are expected to take reasonable steps to ascertain the true location of customers, and may need to anal...Read More