Capital gain tax for properties in New Zealand

Discussion in 'Accounting & Tax' started by Bluechips, 25th Apr, 2017.

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  1. Bluechips

    Bluechips Well-Known Member

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    Hi all,

    I am looking for some tax advice here. We purchased a house and land package in New Zealand back in 2016, and we have recently sold this house and land package. In accordance with the new bright line test in New Zealand, we are entitled to pay capital gain tax on the profits we made.

    But we are actually tax resident in Australia (we moved here in late 2016) now, do we have to pay capital gain tax twice?? or there is a mutual agreement between New Zealand and Australia?

    Appreciate your comments!
     
    Bluechips, 25th Apr, 2017
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    @ellejay might be able to help you out.
     
    Scott No Mates, 25th Apr, 2017
    #2
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Australian tax residents are subject to au tax on worldwide income incl taxable or exempt nz property sales. Credit may be given for any nz tax paid to limit double taxation.
     
    Paul@PAS, 25th Apr, 2017
    #3
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    There is a special cgt rule that may limit how au will tax your cgt issue
     
    Paul@PAS, 25th Apr, 2017
    #4