Why have the rules changed?
The changes respond to public feedback and international investment changes.
They attempt to impose a reasonable level of tax on offshore investments held by New Zealand-resident investors who have shareholdings of less than 10% in foreign companies.
The new rules
These new tax rules implement the government policy to support the KiwiSaver objective to encourage savings by low and middle income earners and to remove inconsistencies in the old rules which:
- overtaxed some investors using New Zealand-based managed funds
- were biased in favour of direct investorment in overseas shares
- favoured investment in certain countries over others.
Date published: 30 Nov 2007
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