From 1 October 2015, according to the bill "On taxation of land ownership of offshore companies and private individuals" a new requirement for the purchase of real estate by foreigners in New Zealand becomes the presence of the current accounts in banks. Only if any Department of Internal Revenue (Inland Revenue Department) can give investors the so-called IRD number, which must be provided when the transfer of funds for real estate transactions in the country. This portal tells the Overseas Professional, the Property (an OPP) with reference to the official information of the Department of Internal Revenue (ATS) of the country.
IRD number must be provided in transactions with housing except for the cases when the acquired property is the principal investor resident place. Also on future foreign owners of property in New Zealand will now require the provision of VAT produced in the country of citizenship, according to Department of Inland Revenue.
Innovation is primarily focused on the fight against speculation in land and real estate by foreigners, as well as to prevent money laundering through real estate transactions. Experts believe that these measures will make unreliable investors to reconsider its intention of buying property in the country.
Also on October 1, the income tax in New Zealand shall be paid on all sales from the property acquired during the two years prior to the date of sale. An exception are the "family" homes that are a primary residence. OPP said that the decision of the authorities of New Zealand will be a test of "serious" intentions of a number of investors.
Department of Internal Revenue has received an additional $ 29 million for the implementation of the new "tax" plan. Within five years, this amount will reach $ 62 million. It is expected that income from tax revenues received in such a way into the coffers of the country, to reach $ 420 million over the next five years.
Also, in July 2016, ATS is planning the introduction of withholding tax for foreign buyers of residential real estate. This would mean that at the time of the transaction with the foreign seller will have to pay a tax of 33% of the profits, or 10% of the total value of the sold property. About that, what option is accepted, the Division will make a decision after October 2, 2015.
Todd Mc Clay, head of the Department of Internal Revenue, explains: "It is much more difficult to charge a tax on speculators in real estate in New Zealand if they live abroad. For this reason, we propose to retain part of the taxes from the sale of right at the time of the transaction - as a pre-payment of any fees that may be imposed on this transaction "
HomesOverseas.ru
