New Zealand: GST measures and dual-resident company tax changes in pending bill

The bill contains a range of policy and remedial provisions and some new provisions.

The bill contains a range of policy and remedial provisions and some new provisions.

The “Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Bill” was introduced yesterday.

The bill contains a range of policy and remedial provisions, most of which have previously been consulted on, but it also contains some new provisions.

The bill includes:

  • New information reporting requirements for New Zealand digital platform operators in the gig and sharing economy
  • Imposing goods and services tax (GST) collection obligations on electronic marketplaces that facilitate accommodation and transportation services
  • New rules for non-resident employers and changes to the non-resident contractors’ tax rules
  • Dual-resident company tax changes (largely in response to the Australian corporate tax residence test change)
  • A build-to-rent exemption from the recent residential interest limitation rules
  • Miscellaneous remedial amendments, including to the residential interest limitation and bright-line rules, and recent GST invoicing changes

In addition, although the bill as introduced applied GST in full to managed fund fees from 2026, including management fees charged to investors in KiwiSaver schemes, the government has announced that this change will be withdrawn from the bill due to concerns raised by the industry and others that some or all of the GST cost would be passed on in the form of increased fees to investors.

Next steps

The bill will be referred to the Finance and Expenditure Select Committee, and a submission due date—likely before the end of the year—will be established.

Read an August 2022 report prepared by the KPMG member firm in New Zealand


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