Rebecca is from France. Shedecides to move to New Zealand, and realises that she is eligible forthe exemption. She currently owns several residential buildings inFrance, from which she receives rent and has a mortgage. She also hassome shares in various French companies.
She has a bank account with a French bank into which she receives rent from her tenants, and receives interest from the bank.
Underprevious New Zealand law, if she were to migrate to New Zealand, shewould be liable to pay New Zealand tax on her rental income andinterest from her bank accounts. She would also have to withholdnon-resident withholding tax (NRWT) on her mortgage interest paymentsmade to the French bank. Furthermore, the shares she owns in Frenchcompanies would constitute FIF interests. She would therefore be liableto pay New Zealand tax on the value of the shares as it accrued,regardless of how much had been distributed.
The new exemptionrules mean that she does not have to pay New Zealand tax on her rentaland interest income for the period of the exemption. Nor does she haveto withhold NRWT on her mortgage interest payments. Furthermore, forthe period of exemption, she does not have to pay any New Zealand taxin relation to the shares held in various French companies (either onthe value of the shares as it accrues or on distributions from theshares).作者: hitye 时间: 2009-11-11 09:06:19