31 Aug 2015

Public feedback sought on withholding tax for overseas buyers

6:25 pm on 31 August 2015

The public consulation process for a withholding tax for overseas buyers of residential property begins today.

The proposed tax is part of a package that includes a tax on capital gains on property bought and sold within two years, excluding the family home.

Revenue Minister Todd McClay said the withholding tax aimed to ensure people looking to make a quick gain from property in New Zealand pay their share of tax.

He said because it can be difficult to collect tax from people overseas, the proposal was that a portion of the proceeds was withheld at the time of sale.

The money would be paid to Inland Revenue as a pre-payment or bond against any tax owed.

Submissions on the proposal close on 2 October.