<p>  The total amount of income that New Zealand residents receive from their savings and investments, will increase in the opinion of the government. The reason for this is the aging of the population and, as a consequence, an increase in the total amount of accumulated capital. Of course, the government is interested in having people and organizations pay taxes in the right amount. And for this it is necessary to obtain a correct idea of the incomes of the population.</p><p>  To this end, on July 7, 2016, the New Zealand Minister of Revenue, Michael Woodhouse, published a document for public consultation, which contains proposals to change the procedure according to which information on investment income should be reported to the local Internal Revenue Service.</p><p>  Currently, payers of interest, dividends and distributed profits of Maori authorities provide tax certificates to the income recipients. Those, in turn, at the end of the year should collect all such certificates from different income sources in order to report to the tax and fulfill their tax obligations.</p><p>  However, for the tax administration it would be much more convenient, you could get the information directly from the payers and use it to pre-populate the tax returns of the income recipients. For this it's proposed to make the following changes:</p><ul><li>on companies that pay dividends, and Maori authorities will be subject to the same reporting requirements for the tax administration as for banks and portfolio investment entities;</li><li>all payers of investment income will provide detailed information to the Internal Revenue Service.</li></ul><p>Investment income, which will be subject to the proposed reforms, are:</p><p>  - interest;</p><p>  - dividends;</p><p>  - income from portfolio investment companies;</p><p>  - royalties.</p><p>  The Register of foreign trusts in New Zealand will not be open</p><p> </p><div><h2><strong>Proposals for reforming the taxation of investment income in New Zealand</strong></h2></div><p>  Payers of investment income in New Zealand, according to suggestions of Michael Woodhouse, will be required to provide monthly to the tax administration certain information about the taxpayer (or during those months when payments occurred, if less than once a month).</p><p>  Information on the taxpayer that will need to be reported includes the following aspects:</p><ul><li>the amount of income paid to the client;</li><li>the amount of tax withheld (if applicable);</li><li>IRD-number of the client (if any);</li><li>customer name;</li><li>client address;</li><li>client date of birth.</li></ul><p>  If the investment is joint, information should be provided about each owner of the investment. If the payer pays interest that is exempt from the withholding tax, you must provide information about the relevant customers.</p><p>  Interest payers should not provide tax certificates to their customers who have provided their IRD number. The rate in case the client does not provide the payer with its IRD number will be increased to 45% for the resident tax with interest and for the income from the portfolio investment company.</p><p>  The New Zealand Tax Office will also create a database of taxpayers with certificates of exemption from withholding tax. All taxpayers who want to receive their investment income without withholding tax will have to receive a certificate of exemption from tax.</p><p>  The proposed innovations will lead to an increase in the amount of information that will be available to the Internal Revenue Service and will allow for the pre-filling of tax returns. For a large number of taxpayers, this will mean that all information about their taxable income will be available in one place.</p><p>  Taxpayers who receive income from other sources, such as income from a foreign source and rental income, will still have to provide information on these revenues to the New Zealand Internal Revenue Service.</p><p> <span style="color: #444444; font-family: Arial, sans-serif; font-size: 10.5pt; text-align: justify;"> </span></p><p style="text-align: center;"><em> If you have any questions, feel free to ask them to <strong>Castle Castle Office</strong> specialists! Write us at:</em></p><p style="text-align: center;"><em> </em><em><strong><em><span face="Calibri" size="3"><span lang="EN-US"><span face="Calibri" size="3"><a href="mailto:info@castle-familyoffice.sg">info@castle-familyoffice.s<span style="text-decoration: underline;">g</span></a></span></span></span></em></strong></em><span style="color: #444444; font-family: Arial, sans-serif; font-size: 10.5pt; text-align: justify;"><br /></span></p>