New Zealand Proposes Changes to FIF Tax Rules

Current foreign investment fund rules are a key deterrent for migrants and returning citizens, Revenue Minister Simon Watts says in emailed statement.

• Proposed changes to the FIF rules involve the addition of a new method to calculate a person’s taxable FIF income, the ‘revenue account method’
  • This will allow new migrants to be taxed on a realization basis for their FIF interests that are not easily disposable and acquired before they came to New Zealand
  • For migrants who risk being double taxed due to their continuing citizenship tax obligations, this method can apply to all their FIF interests
  • Changes would ...