The Government wants feedback on a proposed change to stop foreign investors being over-taxed when they invest in New Zealand.New Zealand residents were taxed on domestic and foreign-sourced income. Non-residents were supposed to be taxed only on New Zeal
The Government wants feedback on a proposed change to stop foreign investors being over-taxed when they invest in New Zealand.
New Zealand residents were taxed on domestic and foreign-sourced income. Non-residents were supposed to be taxed only on New Zealand-sourced income, Revenue Minister Peter Dunne said.
An anomaly meant non-residents investing in foreign assets through portfolios investment entities (PIEs) were taxed on their New Zealand and foreign-sourced income.
"This creates a potential disincentive for foreign investment in New Zealand's financial services industry," Mr Dunne said.
The industry was being asked to comment on two possible options for exempting non-residents investing in PIEs.
