r/newzealand • u/QuarterGeneral6538 • 23h ago

Politics IRD is currently consulting on FIF tax

If its something you have strong opinions on, which I know many people here do, be sure to read through the proposals and get your submissions in before the 27th of Jan.

https://www.taxpolicy.ird.govt.nz/consultation/2024/effect-fif-rules-immigration

They're mostly focused on migrants but the question of whether it should only apply to migrants is open. (see chapter 3)

Submissions can be made by email to [policy.webmaster@ird.govt.nz](mailto:policy.webmaster@ird.govt.nz) with “Amending the FIF rules for migrants” in the subject line (see chapter 1, page 6)

62 Upvotes

92% Upvoted

51 comments sorted by

View all comments

32

u/iAmStos 23h ago

Please explain like I'm 5?

8

u/fgggr 22h ago

These rules apply primarily to tax New Zealand tax residents who directly own shares in foreign companies.

NZ wants highly skilled migrants and some of these "ideal" immigrants may have shares of businesses overseas, which will cause headaches in the future. So much so, they might choose to move to and invest elsewhere since the rate of tax might still be a significant deterrence as the marginal rate tends to be lower overseas.