“New Zealand’s an outlier on this, it’s quite surprising. It’s true that you don’t pay tax on income from a limited number of “boarders” in your house. Capital gains tax. Coalition partner New Zealand First stopped Labour from bringing in a capital gains tax last year. Unlike many other countries, New Zealand currently has virtually no capital gains taxes. Ms Ardern said she negotiated with party leaders directly but could not convince NZ First leader Winston Peters. If you look at the 35 countries that are currently in the OECD, New Zealand’s the only one without.” Non-residents will be subject to CGT only on New Zealand-sourced capital gains. That's according to two University of Auckland researchers, who say section CB6 in the Income Tax Act has existed since the 1970s but was little-known because it was rarely enforced. That’s an argument Labour has made as a party since 2011. “However after almost a decade campaigning on it, and after forming a government that represented the majority of New Zealanders, we have been unable to build a mandate for a capital gains tax. Loading... Unsubscribe from The Everyday Investor? Most states tax capital gains according to the same tax rates they use for regular income. The New Zealand Government has rejected the recommendation of its Tax Working Group that New Zealand introduce a capital gains tax (CGT). After months of deliberations, public consultation and an interim report, the Tax Working Group (TWG) last month delivered its final report. New Zealand capital gains tax applies to foreign debt and equity investments. The policy had been one which Ardern personally wanted to … 1st May 19, 9:28am. New Zealand First leader Winston Peters said he couldn't support the government introducing a capital gains tax because he saw no compelling evidence it would improve equality. While New Zealand’s proposed general capital gains tax (CGT) regime in 2019 was abandoned by Government after much debate. A recommendation by the Tax Working Group in early February, Ardern says a CGT has been “a cornerstone” of Labour’s campaigns for the past three elections – yet it won’t be happening under her leadership. New Zealand Prime Minister Jacinda Ardern announced that plans to impose a capital gains tax (CGT) have been abandoned. Company matters In a nutshell, there is some discussion dedicated to the potential for double taxation and double deductions for gains and losses in the corporate context. Individuals, however, pay the same rate as their income tax rate, the same as has been proposed for New Zealand. This makes New Zealand unusual in the OECD world. Companies in Australia must pay 30 percent tax on any net capital gains. New Zealand already has a capital gains tax - you probably just didn't know it. "No, I could not get the support of NZ First." Once you’ve lived in the property for at least 2 years, you’d reach capital gains tax exemption. Cancel Unsubscribe. Any capital gains tax must apply to assets in Aotearoa New Zealand that are purchased and sold by corporations or people living overseas as well as assets sold or purchased by residents. As expected, the TWG has recommended, amongst other things, an (effective) comprehensive capital gains tax. [clarification needed] In a speech delivered on 3 June 2009, then New Zealand Treasury Secretary John Whitehead called for a capital gains tax to be included in reforms to New Zealand's taxation system. State Taxes on Capital Gains. Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. “I genuinely believe there are inequities in our tax system that a capital gains tax in some form could have helped to resolve. Westpac NZ does not hold a position on a capital gains tax. Capital gains tax to be delayed until January 2022 Sok Chan / Khmer Times Share: Kong Vibol, director-general of the GDT, says capital gains tax will be implemented to promote tax fairness. A bright line test on property speculation was introduced on 1 October 2015, specifying certain purchases and sales of property as income (and thus taxed at the seller's income tax rate). Subscribe Subscribed Unsubscribe 833. New Zealand will remain one of the few developed nations in the world not to have a capital gains tax (CGT), after the Labour-led Government yesterday ruled-out implementing such a measure. 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