This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious


Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

Email Address: 
Password: 

Login »

Forgotten your password?


Today’s Top Headlines




NZ To Ease GST For Non-Resident Firms

by Mary Swire, Tax-news.com, Hong Kong

23 April 2012

New Zealand is to remove goods and services tax (GST) 'impediments' for non-resident businesses in an effort to make the system less burdensome for such companies.

Announcing the measures, Revenue Minister Peter Dunne said that as GST is a tax on consumption and not a tax on business, it should therefore be neutral for both resident and non-resident businesses. Dunne intends to introduce a GST registration system for non-resident businesses to claim back GST and a specific zero-rating rule for tooling costs. Subject to some tax base protection rules, the registration system would allow non-resident businesses to obtain refunds in a similar way to resident businesses.

Dunne explained that there are cases where GST represents a real cost to non-resident businesses when the same cost may be able to be claimed by a New Zealand business as an input tax credit. “It can mean that our GST system is a hurdle for non-resident companies looking to do business with New Zealand businesses, such as in the case of aviation training services provided to foreign airlines,” Dunne added.

The proposals were first put to the public last August, and were supported by submissions to the discussion document issued at the time. Dunne said he will seek Cabinet agreement to implement the measures by April 1, 2014.

“Kiwi businesses are generally are astute and innovative, providing high quality goods and services. By removing GST as an impediment, this will help level the playing field and allow our businesses to compete for contracts internationally,” he stressed.

TAGS: tax | business | training | aviation | multinationals | legislation | New Zealand | services

To see today's news, click here.

Leave a comment

Read our Posting Guidelines