Clock ticking for foreign superannuation schemes PEOPLE living in New Zealand who are eligible for superannuation from overseas only have until the end of March to ensure they don’t potentially pay higher tax than necessary. On April 1, 2014 the way interests in foreign superannuation schemes are taxed will change from foreign investment fund (FIF) to a capital tax on either transfer or withdrawal. Mark Hodder from Craigs Investment Partners says British people or kiwis who contributed to a scheme in the United Kingdom may opt to transfer their superannuation funds when they immigrate or return to New Zealand. “The previous legislation was very complicated, which led to high levels of non-compliance to tax requirements.” IRD is currently holding an amnesty on superannuation transfers as the complexity of the old rules lead to large-scale non-compliance. If a transfer has been initiated before April 1, 2014 the taxable proportion of any funds transferred will be capped at 15 per cent if the transferor elects to rely on the schedule method. As such, anyone who has spent more than seven years in New Zealand since returning or arriving could be disadvantaged if their transfer is not started before the end of the current tax year, that is, 31 March. “We’re helping people understand the implications if they do or don’t take any action,” says Mark. He will discuss the options at a FREE seminar and Astill Hawke and Associates Chartered Accountants will assist with tax advice. From 5.30-6.30pm on Wednesday March 19 hear from the experts how to minimise taxes on foreign superannuation schemes. Venue Astill Hawke offices, 35 Allens Road, East Tamaki. Phone 09 985 9791 or email [email protected] to register.
Posted on: Wed, 12 Mar 2014 03:27:36 +0000
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