Tax on lump sums
Sep 20th 2007, 11:21 am
#1
Just Joined
Thread Starter
Joined: Sep 2007
Posts: 4
Tax on lump sums
Hi. Does anyone know if there is a tax on lump sums eg house sale when you move to NZ. Is there a time limit after which moving lump sums to NZ will be taxed ?
Sep 20th 2007, 3:50 pm
#3
Joe Camel
Joined: Sep 2007
Location: Whangaparaoa Peninsula, Hibiscus Coast
Posts: 7
Re: Tax on lump sums
Even better, as a new immigrant any foreign income you receive, in the first four years after arrival, is not taxed at all 
!
So if, for instance, you still own a house wherever you came from and are renting it out, the rental income will not be taxed in NZ for the first four years !
How great is that
?
Silver
!So if, for instance, you still own a house wherever you came from and are renting it out, the rental income will not be taxed in NZ for the first four years !
How great is that
?Silver
Sep 20th 2007, 7:56 pm
#4
BE Forum Addict
Joined: Oct 2006
Location: NZ
Posts: 3,366
Re: Tax on lump sums
Even better, as a new immigrant any foreign income you receive, in the first four years after arrival, is not taxed at all !
So if, for instance, you still own a house wherever you came from and are renting it out, the rental income will not be taxed in NZ for the first four years !
How great is that?
Silver
!So if, for instance, you still own a house wherever you came from and are renting it out, the rental income will not be taxed in NZ for the first four years !
How great is that
?Silver
That is unless you choose to claim Working for Families tax credits, then you forfeit that benefit
Sep 21st 2007, 7:21 am
#5
Just Joined
Thread Starter
Joined: Sep 2007
Posts: 4
Re: Tax on lump sums
Thanks guys - that is all great news
Sep 21st 2007, 9:50 am
#6
you dewty owld maan!
Joined: Oct 2005
Location: is practically perfect in every way
Posts: 5,565
Re: Tax on lump sums
Even better, as a new immigrant any foreign income you receive, in the first four years after arrival, is not taxed at all !
So if, for instance, you still own a house wherever you came from and are renting it out, the rental income will not be taxed in NZ for the first four years !
How great is that?
Silver
!So if, for instance, you still own a house wherever you came from and are renting it out, the rental income will not be taxed in NZ for the first four years !
How great is that
?Silver
For the skeptical here is the example from the IRD website:
Example 2: Scope of exemption
Rebecca is from France. She decides to move to New Zealand, and realises that she is eligible for the exemption. She currently owns several residential buildings in France, from which she receives rent and has a mortgage. She also has some shares in various French companies.
She has a bank account with a French bank into which she receives rent from her tenants, and receives interest from the bank.
Under previous New Zealand law, if she were to migrate to New Zealand, she would be liable to pay New Zealand tax on her rental income and interest from her bank accounts. She would also have to withhold non-resident withholding tax (NRWT) on her mortgage interest payments made to the French bank. Furthermore, the shares she owns in French companies would constitute FIF interests. She would therefore be liable to pay New Zealand tax on the value of the shares as it accrued, regardless of how much had been distributed.
The new exemption rules mean that she does not have to pay New Zealand tax on her rental and interest income for the period of the exemption. Nor does she have to withhold NRWT on her mortgage interest payments. Furthermore, for the period of exemption, she does not have to pay any New Zealand tax in relation to the shares held in various French companies (either on the value of the shares as it accrues or on distributions from the shares).
Rebecca is from France. She decides to move to New Zealand, and realises that she is eligible for the exemption. She currently owns several residential buildings in France, from which she receives rent and has a mortgage. She also has some shares in various French companies.
She has a bank account with a French bank into which she receives rent from her tenants, and receives interest from the bank.
Under previous New Zealand law, if she were to migrate to New Zealand, she would be liable to pay New Zealand tax on her rental income and interest from her bank accounts. She would also have to withhold non-resident withholding tax (NRWT) on her mortgage interest payments made to the French bank. Furthermore, the shares she owns in French companies would constitute FIF interests. She would therefore be liable to pay New Zealand tax on the value of the shares as it accrued, regardless of how much had been distributed.
The new exemption rules mean that she does not have to pay New Zealand tax on her rental and interest income for the period of the exemption. Nor does she have to withhold NRWT on her mortgage interest payments. Furthermore, for the period of exemption, she does not have to pay any New Zealand tax in relation to the shares held in various French companies (either on the value of the shares as it accrues or on distributions from the shares).
Sep 21st 2007, 12:59 pm
#7
Joe Camel
Joined: Sep 2007
Location: Whangaparaoa Peninsula, Hibiscus Coast
Posts: 7
Re: Tax on lump sums
, you are absolutely right of course 
), thanx !
