The Taxation (Annual Rates for 2019 -20, GST Offshore Supplier Registration and Remedial Matters) Act has received Royal Assent and was passed into law last year, with losses from rental properties now being ring fenced. The biggest change to arise from this new bill is that property investors will no longer have the ability to offset any losses incurred from rental properties against other sources of income, eg salaries, self-employed income etc.
The losses from rental properties can now only be applied against future income earned from any rental property owned by the same entity, and this change took effect from 1 April last year.
This new bill also introduces changes to the way that GST is collected from offshore businesses. Previously, the duty to return GST on overseas purchases greater than $400 lay with the consumer, and this GST was then collected by Customs when goods were imported into New Zealand.
Now, overseas suppliers with turnover greater than $60,000 per annum who supply low value goods will be required to register for GST. They will then need to collect GST on all sales made to New Zealand consumers and return the GST portion to the IRD. Customs will continue to collect GST at the border on goods valued at $1,000 or more. The changes to the way GST is collected took effect from the 1st of December last year.
Greenlion will be happy to help with any questions regarding these changes, keeping in mind that when they do anything for their clients they look for the best solution; correct, astute, cost-effective and forward thinking.
Greenlion’s expert accountants can help you with tax minimisation, planning and structuring, pooling and inermediary services, GST,FBT,PAYE and much more so for more information on tax accountants, accounting firms Auckland and Xero accountants please go to https://www.greenlion.co.nz .