|
 |
|
 |
|
 |
|
|
|
|
|
T(65)6259 0880
F(65)6353 3070
1 Goldhill Plaza
#02-47
Podium Block
Singapore 308899
|
|
|
|
|
2. goods and services tax ...
Goods and services tax (GST) is a consumption tax. It is
applied on the purchase of goods and services.
The GST rate is 12.5%.
Registration for GST is compulsory if you carry out a taxable
activity achieving an annual turnover in excess of NZD40,000.
Upon registration, GST need to be added to the rent charged
and investors must complete a GST return either monthly,
two-monthly or half yearly depending on the level of their
income.
Property investors who have annual incomes below NZD40,000 can
choose whether or not they wish to register for GST.
The purchase of a residential property is exempted from
GST.
Residential property investors do not add GST to the rent
they charge, nor can they deduct GST from their expenses.
However, purchase of a commercial property is not
exempted from GST. A commercial property, which is tenanted,
is deemed to be a business, i.e. a "going concern"
and therefore is zero-rated.
A going concern is an investment property that is rented and
capable of continuing to be rented. This means that GST is
charged at zero %.
|
|
Many
people choose to register for GST even when they do not need to do so in
order to claim back the GST portion of their expenses.
For further information on GST matters in New Zealand,
visit
Inland
Revenue - Te Tari Taake, New Zealand - Goods and Services Tax .
|
|
|
DISCLAIMER
All information provided are to the best of the authors'
knowledge true and accurate. No liability is assumed by the
authors, or publishers, for any losses suffered by any person
relying directly or indirectly upon this information. It is
recommended that clients should consult a senior
representative of a reputable accounting or tax consulting
firm before acting upon this information.
|
|
|
|
