Filing from Singapore

Question from Nick updated on 3rd May 2013:

I am a Kiwi living in Singapore and I am therefore a tax resident of Singapore. I am putting an offer in to purchase an investment property in New Zealand. The mortgage is with a New Zealand bank, the property will be slightly positively geared. How do I treat returns from a tax perspective? Do I need to be GST registered vs paying ordinary non-resident withholding (NRWT) tax? At what rates? Also, do I need to declare New Zealand income in Singapore?

Our expert Mark Withers responded:

You will need to file an IR3NR non-resident tax return here in New Zealand. In that return you are expected to declare the New Zealand derived rental income. If there is a profit tax will be payable. There should be no NRWT if the debt is local. A residential rental is an exempt activity for GST so nothing required there. You should take tax advice in Singapore with regards the filing requirements there.

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

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