New rules apply from 1 October 2015 for buying, selling or transferring New Zealand property:
Unless the property is their main home, NZ citizens and residents must provide an IRD number and a taxpayer identification number (equivalent of an IRD number) from other countries where they have to pay tax on their worldwide income.
People transferring a property that is in a Trust need to provide an IRD number for the trust (an individual’s IRD number is not acceptable).
NZ has one of the highest rates of family trusts in the world, with thousands of these in Tauranga and the Bay Of Plenty. Many of these trusts own a house as their main or sole asset.
If your trust does not have an IRD number and you or your trustees are trying to sell the property in a hurry, for example in the case of a deceased estate, then this could result in settlement delays and extra expenses.
Additionally if your trust owns a property and you wish to alter the Trustees, you will also be required to provide an IRD number.
Getting an IRD number is pretty straight forward, give us a call and we can do this for you.
On receipt of correct applications, IRD will send an IRD number within 10 working days.
Don’t forget, we’re here for all your small business accounting needs – whether that be preparing your end of year financial reports, or helping you on an ongoing basis with monthly accounts. Get in touch with us – we can meet up wherever you are in Tauranga, at anytime that suits you!