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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news