In a much-anticipated move, the Policy Advice Division of Inland Revenue and the New Zealand Treasury released an Officials’ issues paper last week on the Taxation of Foreign Superannuation.
We welcome the release of the paper, which signals some fundamental changes in the way in which foreign superannuation schemes are likely to be taxed in the future. This issue is one we frequently come across here at NZ US Tax Specialists, with our clients, most of whom are United States citizens living in New Zealand, frequently having IRAs and 401k holdings back in the United States.
Further information will be posted here on the technical aspects of the paper as we prepare to make a submission on the paper before the September 3 deadline.