NZ Income ... - PropertyInvesting.com

Viewing 6 posts - 1 through 6 (of 6 total)

bennido
Participant
@bennido
Join Date: 2004
Post Count: 195
September 2, 2004 - 12:11 am
If I earn income a +ve IP in NZ but I keep all profits in a bank account in NZ and NOT transfer the funds over to my Australia account, would I need to declare the NZ income in my Australia tax return ?
All I need to do is to lodge a NZ tax return, right ?
RodC
Member
@rodc
Join Date: 2002
Post Count: 335
September 2, 2004 - 12:18 am
Talk to your accountant.
However if the NZ IP is in your name (not a NZ trust or company) then I would think you should declare the earnings in OZ as well irrespective of whether you physically transfer the funds.
You should get a credit in Oz for the tax paid in NZ though.
regards,
Rod. (I am not an accountant, talk to a real one).
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 2, 2004 - 1:38 am
The ATO wants to know about your worldwide income, so you will be requried to declare your NZ income.
Terryw
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RodC
Member
@rodc
Join Date: 2002
Post Count: 335
September 2, 2004 - 5:40 am
That’s what I was trying to say. If you’re an Aussie resident you must declare all worldwide income, irrespective of whether you physically bring it back or not.
Rod.
nugen
Member
@nugen
Join Date: 2003
Post Count: 58
September 2, 2004 - 9:44 am
I spoke to an accountant.OZ and NZ have a single tax rule where you only pay tax in one country. Doesn’t matter which country.
Iv’e got a slightly different question. If I make $5k profit on my properties over in NZ this year, is that $5k on top of my taxable income? If so if I spend $5k on renos on those properties my taxable income doesn’t get affected.
Thanks
Nugen
MiniMogul
Participant
@minimogul
Join Date: 2002
Post Count: 1,414
September 2, 2004 - 11:56 am
As I understand it, taxable income is not necessarily ‘profit’ – because it’s profit minus what you can claim as a tax deduction. But what you can and can’t claim – like for example the difference between maintenance (you can claim) and renovation (you can’t) could be quite subtle which is why you need to talk to a professional – at least once! But no you don’t pay tax twice.
You bring your NZ tax return in on your Aus. one.
cheers-
Mini
joy to the world