The Finance and Expenditure Committee reported back on two Bills on Monday. The Bills were the Taxation (Transformation: First Phase Simplification and Other Measures) Bill and the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Bill.

As we have previously covered the first phase simplification bill largely just prepares the various tax Acts for the future changes as part of the simplification process. 

The Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Bill contains some more substantial changes including the taxation of remote services and a withholding tax on land sales involving overseas persons. 

Some of the key changes proposed include: 

  • Transitional provisions in relation to GST for some fixed term contracts 
  • Some amendments to the proposed rules for electronic market places and how they will operate in the new GST environment. Specifically around who will be liable to pay the GST 
  • Amendments to the provisions relating to zero rating of business to business supplies of remote services to take advantage of the current non-resident rules in s 8(4B) and allow a unilateral election to zero rate the supply 
  • Clarification around how currency conversion would work 
  • A new section to help determine the residence of the recipient of a remote service 

Both bills are now awaiting their second reading. 

As the 31st is next Thursday our next tax blog will be in the new financial year. Hopefully everyone is on top of all their filing requirements and we will catch you all in 2016!