New Zealand: Business tax, AEOI and foreign trust legislation introduced

New Zealand: Business tax, AEOI and foreign trust

In New Zealand, a second omnibus tax bill for 2016 has been introduced and contains the following provisions:

Related content

  • A new accounting income method (AIM) for calculating provisional tax that would limit application of use-of-money interest (UOMI) and that proposes a series of other business tax changes to enhance compliance
  • A requirement for New Zealand financial institutions to review and report non-resident account holders (and their financial account information) to Inland Revenue that, in turn, would automatically exchange this information with other participating countries under the OECD’s automatic exchange of information (AEOI) initiative
  • Enhanced disclosure requirements for New Zealand foreign trusts, following the independent review’s recommendations made earlier this year

KPMG observation

The proposals would have broad application, and would largely implement measures that have been the subject of previous consultations. The business tax measures are expected to help business taxpayers manage their provisional tax, UOMI, and penalty exposures. The AEOI and foreign trust disclosure measures reflect New Zealand’s commitments as a “global citizen” to enhance tax transparency. 

 

Read an August 2016 report [PDF 358 KB] prepared by the KPMG member firm in New Zealand: Business tax, AEOI and foreign trust legislation introduced

Read more about the AEOI proposals in an August 2016 report [PDF 50 KB] prepared by the KPMG member firm in New Zealand

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