Budget 2015 – property compliance proposals announced

The Prime Minister John Key announced proposals today to improve tax compliance in the property investment sector. The proposals, which are not aimed at the main family home, include:

  • A New Zealand IRD number will be required as part of the land transfer process.
  • As part of the land transfer process, non-resident buyers and sellers must also provide their tax identification number from their home country.
  • Non-residents will also need a New Zealand bank account before they can get an IRD number in order to buy a property.
  • Gains from residential property sold within two years of purchase will be taxed, unless the property is the seller’s main home, inherited from a deceased estate or transferred as part of a relationship property settlement.
  • An extra Budget allocation for Inland Revenue work investigating property compliance, aggressive tax planning and hidden economy initiatives.