New Zealand Personal Taxation - Rates, Capital Gains Tax

From 1st April 2000 personal rates of taxation are:

Income from $0.00 to $38,000 - 19.5%

Income from $38,001 - $60,000  - 33%

Income above $60,000 - 39%

For individuals earning less than $38,000 annually, there is a 'low income earner' rebate which reduces the effective tax rate.

Capital Gains Tax

New Zealand does not have a capital gains tax unless

  •     You trade assets frequently (any kind including property– not just shares)
  •     You are in the business of trading assets
  •     You purchase assets with the prime intention of selling at a capital profit.

The rules on what activity incur liability to pay tax on capital gains are not overly clear and have been determined to a large extent by case law.