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Hot Topic EARNINGS
Hot Topic EARNINGS
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New tax bill introduced

A bill introduced to Parliament today will bring New Zealand's international tax rules into line with those of other countries, Revenue Minister Peter Dunne says.The Taxation (International Investment and Remedial Matters) Bill would allow joint ventures

NZPA
Tue, 26 Oct 2010

A bill introduced to Parliament today will bring New Zealand's international tax rules into line with those of other countries, Revenue Minister Peter Dunne says.

The Taxation (International Investment and Remedial Matters) Bill would allow joint ventures and other significant New Zealand shareholdings in foreign companies not controlled by New Zealand firms an active income exemption, he said today.

New Zealanders holding stakes of 10 percent or more in offshore companies would not be subject to New Zealand tax on those interests unless the companies earned passive income such as interest, royalties and rents.

If those companies had a small amount of passive income of less than 5 percent of their total income, there would be no New Zealand tax on the interest at all.

Mr Dunne said other changes in the bill were intended to make the new international tax rules introduced last year work as intended.

NZPA
Tue, 26 Oct 2010
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New tax bill introduced
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