New Zealand: GST on remote services, residential land withholding tax

New Zealand: GST on remote services, residential land

Two 2015 tax bills have been reported back from the Finance and Expenditure Select Committee of Parliament with a number of changes.

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  • The first bill concerns goods and services tax (GST) with respect to non-resident supplies of “remote services” (e.g., digital content) to New Zealand consumers and a residential land withholding tax on the sale of land within two years by “offshore persons.”
  • The second bill introduces a framework for information sharing and taxpayer communication under Inland Revenue’s business transformation proposals and new rules for deducting tax on employee share plan or scheme benefits. 

Among the changes made during the parliamentary process are measures providing that land developers that are offshore persons may be able to apply for an exemption certificate from the withholding tax. Also, an offshore person will not need a New Zealand bank account, to get an Inland Revenue Department (IRD) number, if they have already been subject to New Zealand anti-money laundering verification or are non-resident suppliers registering solely for GST. 

 

Read a March 2016 report [PDF 597 KB] prepared by the KPMG member firm in New Zealand

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