Withholding tax planned for overseas sellers
Revenue Minister Todd McClay said the proposed tax, which will only apply to offshore sellers, is an important part of the Government’s residential property tax compliance work.
It will help ensure that tax is paid under the bright-line test legislation, which was introduced into Parliament last week.
Both pieces of legislation are intended to target people who are seeking to make a quick gain from property, whether they are based in New Zealand or overseas.
McClay said it can be more difficult to collect tax from people speculating on property in New Zealand if that seller lives overseas.
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