Locked-out New Zealanders outraged as visa scheme for rich foreigners resumes

Re:Locked-out New Zealanders outraged as visa scheme for ric... by yardstick on Saturday December 25, 2021 @05:14AM (#29681975)

While NZ’s lack of capital gains tax should make it enticing, the terrible overseas investment policies/taxes make it less appealing to multi-national companies and investors.

To those outside NZ: owning shares in non-NZ companies typically means a 5% yearly wealth tax if the shares don’t pay dividends (Ie most tech companies that are share price growth driven).

See https://www.ird.govt.nz/income-tax/income-tax-for-businesses...

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Re:Locked-out New Zealanders outraged as visa scheme for ric... by jashmatthews on Saturday December 25, 2021 @10:55AM (#29684245)

In NZ the normal way is Comparative Value which taxes the increase in market value when you sell.

Fair Dividend Rate isn't a wealth tax. It's a frankly bullshit option rich people can use when their investments do really well to cap the tax owed to 5% of the starting market value.

Hatch explain it a bit here: https://www.hatchinvest.nz/learn-articles/tax-50000-fif

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