Category Taxation in New Zealand

Tax Cuts and Road taxes on Horizon in New Zealand

February 16, 2017 Taxation in New Zealand

Auckland traffic taxWELLINGTON – New Zealanders can look forward to tax cuts on their incomes, but may also need to face new forms of road taxes in the near future.

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

Carbon Tax Hurting NZ Shipping Operators

February 13, 2017 Taxation in New Zealand

Shipping in New ZealandWELLINGTON – Environmental taxes in New Zealand are leaving the burden of the tax on local shipping operators, while ships visiting on the short term are able to skip the levy entirely.

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

New Zealand Sees $1.8 Billion Surplus

October 14, 2016 Taxation in New Zealand

Tax revenue in New ZealandWELLINGTON – An unexpected surplus in New Zealand has bought the idea of tax cuts back to the table.

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.


Read More

New Zealand Wont See Property Investment Tax

October 11, 2016 Taxation in New Zealand

House TaxAUCKLAND – New Zealand will not have a tax on property investment by foreigners, despite renewed calls from the Mayor of Auckland.

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

Netflix Tax Set to Start in New Zealand

September 30, 2016 Taxation in New Zealand

Netflix TaxWELLINGTON – Digital products and services are about to get more expensive over the weekend, as the long-planned Netflix Tax takes effect.

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