A must read if you have an overseas pension fund!
The Inland Revenue has radically changed the way it treats overseas pension funds for tax purposes and any lump sum transfers bringing funds to New Zealand. There has been a lot of media coverage to raise awareness of these recent changes. If you have already brought over your pension fund or are thinking about bringing it over, read on.
(Please note: This doesn’t apply if you are in retirement and receiving regular payments.)
The IRD are specifically targeting residents who brought over their pensions between 2000 and 2014 and did not declare the transfer in their tax returns. There are some complex issues and calculations to consider what tax is due in this situation but the IRD has given an easy-to-calculate and low risk concession. Any past transfers must be addressed urgently.
For residents who still have pension funds overseas and are thinking of transferring them to New Zealand, there are a mixture of tax, financial and foreign legislative issues to consider that mean you need to take advice from a range of experts.
Whatever your situation or your past or future actions around these overseas pension fund issues, ignoring it is not a good course of action!
If you would like to find out more or have any questions, please do not hesitate to contact Philippa O'Mara, Director of Engine Room on 09 238 5939 or 0800 2 ENGINE or get in touch using our Contact Us page.