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


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.