The Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Bill has landed, and it’s a case of “steady as she goes”.

The main themes are technical clean-ups, compliance simplification, and a handful of practical updates to keep the system running smoothly.

A few highlights from this year’s Bill:

  •  Non-resident visitors: New rules to allow eligible visitors (including digital nomads) to be treated as non-residents for tax purposes for up to 275 days in any 18-month period, making it easier for remote workers to spend time in New Zealand without unexpected tax complications.
     
  • GST and joint ventures: Members of certain joint ventures may be able to individually account for GST, rather than registering the joint venture itself—an option for those involved in collaborative projects.
     
  • Foreign investment funds (FIF): A new “revenue account method” will allow some offshore investments to be taxed on a realisation basis, offering relief for new migrants and returning Kiwis with overseas shares.
     
  • Employee share schemes (ESS): Unlisted companies in the early stages of life can now opt to defer the taxing point for employee share benefits until a “liquidity event” (like a sale or listing), making it easier for employees to manage tax on shares that are hard to value or sell.
     
  • Investment Boost remedials: The Bill clarifies and tightens the rules around the Investment Boost deduction, including restoring the $1,000 low-value asset threshold and ensuring second-hand assets and certain asset transfers are treated as intended.
     
  • Technical fixes: There are also clarifications for FBT on gift cards, updated thresholds, and streamlined trust disclosure rules.

For those seeking further insight on the Bill, the accompanying commentary offers a comprehensive overview of the technical details.

Note that some changes to the rules are expected prior to the enactment of the Bill, but the overall concepts generally remain consistent. As always, please reach out to one of the team if you have any questions or concerns.