Category Taxation in New Zealand

New Zealand to Overhaul GST Rules

April 24, 2012 Taxation in New Zealand

GST claims for non-resident businessesNew Zealand will soon establish a GST registration system for non-resident businesses, allowing them to claim GST refunds.

On April 23rd the Minister of Revenue of New Zealand Peter Dunne released a statement outlining the government’s intention to overhaul the national Goods and Service Tax (GST) system, allowing foreign businesses to claim GST refunds.

According to the Minister, the GST system should be neutral for both non-residents and New Zealand companies doing business in New Zealand. However, under current regulations, non-resident businesses are not able to make claims for and receive a refund for GST. He suggested that the disparity “can mean that our GST system is a hurdle for non-resident companies looking to do business with New Zealand businesses.”

Peter Dunne indicated ...

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New Zealand Misses Own Revenue Targets

March 6, 2012 Taxation in New Zealand

New Zealand Tax Revenues Below ForecastWELLINGTON – Tax revenues in New Zealand are nearly NZD 1 billion below forecast, but the government still believes that the country will reach a budget surplus within 2 years.

As was shown in the latest Financial Statements of the Government of New Zealand released on March 6th, tax revenues in New Zealand for the period of seven months, ending January 31st 2012, were NZD 946 million below forecast, while being NZD 1.1 billion above tax revenues during the same period in the previous year.

According to the Treasury of New Zealand, the lower than forecast tax revenues are a result of unexpectedly weak overall economic activity in New Zealand, which led to lowered collection of all taxes.

For the seven month period, collections of Goods and Service Tax (GST) were down by 4 percent, mainly ...

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Tax Revenues in New Zealand Below Forecasts

February 21, 2012 Taxation in New Zealand

New ZealandWELLINGTON – New Zealand has seen lower than expected tax collections levels in 2011, but the drop was offset by economic measures taken by the government to decrease own spending levels.

According to the latest Financial Statements of the government of New Zealand, which were released on February 20th by the Treasury of New Zealand, tax revenues in the country over for the six month to December 2011 were 1.4 percent below forecast, but 3.3 percent greater than in the same period of the previous year.
The total tax revenues collected in New Zealand during the six months were NZD 26.4 billion, while the government’s forecast for the time period was NZD 26.8 billion...

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New Zealand Tax System Deemed Stable and Effective

February 9, 2012 Taxation in New Zealand

New Zealand
The New Zealand tax system is coherent and stable, and is well suited to the economic goals of the country’s government, according to a new document released by the national tax authority.

The New Zealand Inland Revenue Department (IRD) has issued the Briefing for the Incoming Minister of Revenue, outlining the state of the national tax system and evaluating the effectiveness of current tax policies and potential future tax changes.

According to the IRD, the tax system in New Zealand “…is in a good place. The tax bases are broad, robust and provide reliable sources of revenue to fund Government programmes. The broad tax bases and the relatively low tax rates make the tax system among the most coherent in the OECD.”

The briefing outlined several options for potential tax changes in New Zea...

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Debts Dig at New Zealand Credit Rating

September 29, 2011 Taxation in New Zealand

New Zealand Credit RatingWELLINGTON – New Zealand’s credit rating has been downgraded by by Fitch Ratings from AA+ to AA, with high debt levels being cited as the primary reason.

On September 30th the international credit rating agency Fitch Ratings announced that it has cut New Zealand’s credit rating from AA+ to AA. World markets immediately reacted to the news, with the New Zealand Dollar falling to a six month low and yields on New Zealand 10 year notes rising by 2 basis points.

New Zealand’s high levels of net external debt were cited as the primary reason for the downgrade, and currently it stand at 83 percent of the national GDP, compared to an approximate median of 10 percent for other countries with an AA credit rating by Fitch Ratings...

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