Find out about where to get information about taxation in Australia, trans-Tasman imputation, wine equalisation tax rebates, dual residency determinations and zero rate determinations.
Australian Taxation Office
The Australian equivalent of Inland Revenue is the Australian Taxation Office. Visit their website for more information.
Trans-Tasman imputation
Trans-Tasman imputation lets Australian companies keep an imputation credit account in New Zealand and pass on imputation credits to their New Zealand shareholders.
In a similar way, New Zealand companies may also be able to use the Australian franking system.
Imputation between Australia and New Zealand
Wine equalisation tax rebates
Australia charges a wine equalisation tax (WET) on certain dealings with wine sold there. Approved New Zealand producers of wine may be able to claim a rebate for any tax paid in Australia.
Dual residency determinations
Article 4(1) of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting requires non-individual taxpayers that are dual residents to apply to either competent authority for a determination of their residency for tax treaty purposes.
If there is no agreement, treaty benefits will be denied or only granted to the extent to which competent authorities can agree.
Inland Revenue and the Australian Taxation Office have agreed an administrative approach under which eligible taxpayers can self-determine their residence without the need to apply for a determination. This approach is designed to reduce compliance costs for eligible taxpayers.
See 'Tax residency status for companies' to find out about the administrative approach and how to apply for a determination if the criteria for self-assessment are not met.
Tax residency status for companies
Zero rate determinations
New Zealand double tax agreements with Australia, Hong Kong and the United States (US) provide for competent authority determinations to allow a zero rate of withholding tax to be applied on the payment of a particular dividend. You will need to apply in writing to the relevant taxation authority requesting competent authority consideration of the matter by setting out in some detail the relevant facts and circumstances of the case, before payment of the relevant dividend.
For New Zealand subsidiaries of Australian, Hong Kong and US parent companies, direct your correspondence to:
New Zealand Competent Authority
International Revenue Strategy
PO Box 2198
Wellington 6140
New Zealand
competent.authority@ird.govt.nz
Your letter to the 'New Zealand Competent Authority' should provide full background details, including:
- details as to recent changes in corporate structure
- any recent material changes in capital structure
- recent trading history (including why the proposed dividend is unimputed).
