Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Foreign Super Tax Amnesty

Foreign Super Tax Amnesty

Extended window for foreign super transfers to take advantage of more favourable tax option


An amendment has been announced today, to foreign superannuation tax changes in theTaxation Bill (Annual Rates, Foreign Superannuation, and Remedial Matters), which extends the opportunity for people to take advantage of a special 15% option on foreign superannuation withdrawals.

From 1 April, new tax rules will apply to New Zealanders holding foreign superannuation scheme interests. The Bill also contains an option for members of foreign superannuation schemes to “square” their tax liability if they should have been paying tax on income, or on withdrawals from the scheme, before 31 March 2014 but have not. This special option limits the taxable amount of any withdrawals from foreign superannuation schemes between 1 January 2000 and 31 March 2014 to 15% and is intended as an amnesty of sorts, for previous non-compliance.

The 15% option will now be available to anyone who has applied to their foreign superannuation scheme for the release or transfer of funds to a New Zealand scheme before 1 April, including where the transfer is not completed by that date. Prior to this amendment it would have been necessary for the transfer to have been completed in order for the 15% option to be available.

“This is a positive clarification which provides New Zealanders with a great opportunity to get their foreign superannuation in order and take advantage of the 15% option.” says Rebecca Armour, Tax Director and Head of International Executive Services at KPMG. “ In our experience, transferring superannuation interests from a foreign fund to New Zealand can take a long time and this change means that more people will be able to benefit from the amnesty on offer.” says Armour.

Armour says that many people are still unaware of the changes to the tax treatment of foreign superannuation, which will take effect from 1 April 2014. Under the new rules, tax will be payable on amounts from foreign superannuation schemes at the time they are transferred to New Zealand. The percentage of the transfer that is taxable increases, based on the amount of time a person has lived in New Zealand. For example, someone who has lived here for 15 years will be taxed on nearly 50% of their foreign superannuation.

“For people who have been living in New Zealand for a long time, they may wish to consider withdrawing their foreign superannuation to access the more favourable 15% option.” says Armour. This latest amendment means that as long as an application is made to the foreign superannuation scheme to withdraw the funds by 31 March, the 15% option will be available.

While the Bill has not been enacted yet, it is expected to become law soon. The tax, under the 15% option, will need to be paid in the tax return for either the 2013-2014 or 2014-2015 year.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news