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Foreign Superannuation Seminar

When:

Wed 19 Mar 2014, 5:30pm–6:30pm

Where: Astill Hawke Chartered Accountants, 35 Allens Road, East Tamaki, Auckland

Restrictions: All Ages

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Listed by: jackie8

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.”

The level of tax due, if funds are either transferred to New Zealand or benefits are taken as a New Zealand tax resident will usually be calculated by either the ‘schedule method’ or the ‘formula method’.

In short, tax due under the schedule method is a capital tax and the level of liability depends on the length of time since returning to or arriving in New Zealand.

The formula method taxes the actual gains made in the fund plus some interest.
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 transfer or 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.

“It may not be in a person’s best interest to take the amnesty or transfer their funds as every case needs to be individually assessed,” says Mr Hodder.

“We’re helping people understand the implications if they do or don’t take any action.”
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.

Phone 985 9791 or email office@astillhawke.co.nz to register.

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