New Zealand: “Bright-line” test; taxing residential property transactions

New Zealand: “Bright-line” test; residential property

Legislation concerning the taxation of certain transactions involving land is pending enactment. Parliament’s Finance and Expenditure Committee “reported back” a bill—the Taxation (Bright-line Test for Residential Land) Bill. The bill is now awaiting enactment.

Related content

The bright-line test, once enacted, will impose tax on residential land acquired on or after 1 October 2015, if the property is sold within two years of the registration date. There is an exception if the property is being used as the owner’s main home. 

The bright-line test complements the new land information tax requirements for buyers and sellers of New Zealand land, enacted in September and effective from 1 October 2015. The disclosure requirements include Inland Revenue Department (IRD) numbers (and other tax details) on settlement, unless an exemption applies.  

 

Read an October 2015 report [PDF 444 KB] prepared by the KPMG member firm in New Zealand: Bright-line property tax rule nears enactment 

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.