Tax on Residential Property Sales – Additional Property Tax Compliance

Land Information New Zealand is also required to collect information when people buy, sell or transfer property.  The information will be passed to Inland Revenue to follow up on those who have tax obligations.

  • You will be required to provide your IRD number and other tax details before transferring a property unless the property is your ‘main home’.
  • A tax statement will need to be completed by you prior to settlement regardless of whether the property is your ‘main home’.
  • Unless you intend to claim a main home exemption you will need to ensure you allow sufficient time before settlement to apply for an IRD number.
  • If your property is owned in a Trust you will need to ensure that the Trust has an IRD number before settlement.  Again, you will need to allow sufficient time to apply for an IRD number if your Trust does not have one.
  • Those that are tax resident in another jurisdiction are required to provide the equivalent of their IRD number in that country as well as their New Zealand IRD number.
  • If you are an offshore person (including a Company or a Trust) further tax details are required.
  • Offshore persons who need to apply for a New Zealand IRD number will be required to have an operational New Zealand bank account as a pre-requisite to applying for a New Zealand IRD number.  Offshore persons will need to allow more time to ensure all tax details can be provided prior to settlement.

Please contact us if you have any questions regarding your tax obligations.  If we do not hear from you we will assume that you do not need our further advice on the above matters.

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