If you have lived in New Zealand for over four years and you still have a Foreign Superannuation Fund and haven’t paid any New Zealand tax on it – it might be beneficial to either cash-up the fund or transfer it to a New Zealand fund, before 1st April 2014.
These considerations arise from future changes designed to simplify the taxation of foreign superannuation schemes and are planned to take effect from 1st April 2014.
The current rules tax foreign superannuation schemes under the Foreign Investment Fund (FIF) rules, which due to their complexity, result in a high level of non-compliance.
The new rules will contain transitional provisions for lump sum pay-outs or transfers to New Zealand Schemes made between 1st January 2000 and 31st March 2014. In cases where these pay-outs and transfers have been made from foreign superannuation schemes which have not been taxed under the FIF rules, a 15% transitional fraction will be applied to the pay-outs or transfers to calculate extra assessable income of the individual.Details