Taxation – Capital Gains

There is no general capital gains tax in New Zealand. However, gross (taxable) income includes amounts derived from certain transactions which would be taxed as capital gains in other jurisdictions. These transactions include the following:

(a) profits from the sale of land in certain circumstances, lease incentives, and surrender payments as well as lease transfer payments in certain circumstances;
(b) profits from the sale of any personal property acquired with the purpose of sale or pursuant to a profit-making scheme;
(c) profits from the sale of residential land purchased and sold (or otherwise transferred) within either two or five years, depending on the purchase date of the property (known as the “bright-line” test), unless an exception applies, including an exception for the transfer of property used predominantly, for most of the time that the seller has owned it, as their main home;
(d) certain royalty payments; and
(e) certain gains in the value of “financial arrangements” under the accruals regime.