New Zealand — Tax: Capital Gains

Key facts

• New Zealand does not have a general capital gains tax, nor does it levy tax on inheritances.

Steps

1. Determine tax residence status — The first step is to determine tax residence status in New Zealand. This will impact the tax implications of capital gains.
2. Identify tax-exempt assets — Identify which assets are exempt from capital gains tax, such as main residences and certain types of investments.
3. Calculate capital gains tax — Calculate the capital gains tax liability on the sale of assets, taking into account any exemptions and tax rates.

Costs

• Tax accountant or lawyer fees: varies by provider and complexity of case

Timelines

• Processing time for tax assessment: varies, typically several months

Required documents

• Tax identification number
• Proof of tax residence status
• Details of assets disposed of and gains made

Common mistakes

• Failing to declare capital gains or withholding tax on foreign-sourced income
• Incorrectly claiming exemptions or deductions