New Zealand

Details

  • Type: Regulatory update
  • Date: 3/12/2013

Contact the KPMG Tax Team

John Cantin

John Cantin

Partner  - Tax 

+64 4 816 4518


Darshana Elwela

Darshana Elwela

National Director - Tax

+64 9 367 5940

Taxmail - Foreign Superannuation will be taxed on withdrawal 

Under the new foreign superannuation tax rule, withdrawals will be taxed and tax rate will be based on how long the holder has been NZ tax resident.

The FEC also recommended that the new rules not apply to foreign superannuation schemes acquired while a person was New Zealand resident.
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The Taxation (Annual Rates, Foreign Superannuation and Remedial Matters) Bill (the “Bill”) has been reported back by the Finance and Expenditure Committee (“FEC”) considering submissions on the Bill.

 

The Bill changes the way foreign superannuation scheme interests will be taxed. Under the new rules, these will be taxed only on withdrawal. The FEC has recommended a number of changes, including extending the amnesty for past non-compliance to a wider range of foreign superannuation schemes. This is a welcome clarification.

 

In response to Officials’ concerns, the FEC has also recommended the new rules not apply to foreign superannuation schemes acquired while a person was New Zealand resident. We have serious concerns with this restriction and we do not believe that Officials have fully considered the consequences. Taxmail discusses this and other changes in the reported-back Bill.

Taxmail - Comment on topical tax issues from KPMG NZ Tax. 

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