New Zealand: Interest limitations, GST measures and foreign exchange rules in pending bill

Recommended changes to pending legislation include interest limitations, GST measures and foreign exchange rules

A parliamentary committee has reported back and recommended changes to pending legislation

A parliamentary committee has reported back and recommended changes to pending legislation, the “Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill.”

The bill includes:

  • Interest limitations or interest deductibility restrictions for residential property investments (to be effective from 1 October 2021)
  • Proposals to modernise the information requirements regarding the goods and services tax (GST)—including changes to terminology (such as the term, tax invoice, would be replaced with taxable supply information), scope, content, and processes (replacing the need to issue credit/debit notes with supply correction information) as well as removing the need to get Inland Revenue pre-approval for buyer-created invoices
  • Changes to improve the workability of the “fair dividend rate” rules for foreign exchange hedges

Read a March 2022 report prepared by the KPMG member firm in New Zealand

 

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