Feedback wanted on tax change proposal

Revenue Minister Peter Dunne said non-residents were supposed to be taxed only on New Zealand-sourced income. Photo / Sarah Ivey

The Government wants feedback on a proposed change to stop foreign investors being over-taxed when they invest in New Zealand.

New Zealand residents were taxed on domestic and foreign-sourced income. Non-residents were supposed to be taxed only on New Zealand-sourced income, Revenue Minister Peter Dunne said.

An anomaly meant non-residents investing in foreign assets through portfolios investment entities (PIEs) were taxed on their New Zealand and foreign-sourced income.

``This creates a potential disincentive for foreign investment in New Zealand's financial services industry,' Mr Dunne said.

The industry was being asked to comment on two possible options for exempting non-residents investing in PIEs.

- NZPA