New Zealand: Update on pending tax legislation - KPMG Global
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New Zealand: Update on pending tax legislation, individual taxation

New Zealand: Update on pending tax legislation

Tax legislation in New Zealand is advancing, with a parliamentary committee’s report of amendments. The legislation—Taxation (Annual Rates for 2018-19, Modernising Tax Administration and Remedial Matters) Bill—is expected to be enacted by 31 March 2019.

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The tax bill includes measures that generally concern individual taxpayers. The changes made during the committee stage of the legislative process include provisions that:

  • Remove clauses that would have allowed the Commissioner of Inland Revenue to make greater use of administrative authority to deal with minor legislative anomalies
  • Remove liability for certain interest and penalties for individuals with only salary and interest income when the amount of tax is incorrectly calculated
  • Allow gains on receipt of insurance proceeds for buildings that were irreparably damaged by the 2016 Kaikoura earthquakes to be “rolled over” if the property is held in a revenue account
  • Defer to 1 April 2020 (from 1 July 2019) the removal of the “lock in period” for individual taxpayers who join “KiwiSaver” between the ages of 60 and 65 years
  • Increase the turnover threshold for taxpayers to use the new short-process binding rulings regime (increased to NZ $20 million from NZ $5 million)
  • Amend the extension of the “bright-line” period for taxing sales of residential real estate to five years (from two years)
  • Make technical amendments to new bloodstock tax deduction rules
  • Revise the portfolio investment entity tax regime

 

Read a January 2019 report prepared by the KPMG member firm in New Zealand

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