IRD Number Requirements

The tax legislation with new information requirements was enacted on 23 September 2015 to take effect for all S&P agreements entered into from 1 October 2015.

Both vendors and purchasers will be required to provide a tax statement to Land Information NZ through their lawyer. LINZ will then pass on that information to the IRD.

This tax statement needs to have an IRD number included unless the vendors/purchasers are on-shore individuals that are buying or selling their main home.

An individual is on-shore if:

  • they are a NZ citizen and have been in NZ within the past 3 years; or
  • they hold a NZ residency visa and have been in NZ within the past 12 months.

This is what the different categories will need to provide:

Onshore Individual main home

  • Tax Statement
  • No IRD number required

 

Onshore Individual rental property

  • Tax Statement
  • IRD number required

 

Offshore Individual main home

  • Tax Statement
  • IRD number required
  • Overseas Tax number
  • Evidence of NZ bank account provided to the IRD

 

Offshore Individual rental property

  • Tax Statement
  • IRD number required
  • Overseas Tax number
  • Evidence of NZ bank account provided to the IRD

 

Onshore Trust or Company

  • Tax Statement
  • IRD number required

 

Offshore Trust or Company

  • Tax Statement
  • IRD number required
  • Overseas Tax number
  • Evidence of NZ bank account provided to the IRD

 

Aside from the IRD number, the tax statement will also include the following:

  • Full name, date & signature of vendor/purchaser
  • Whether the land has a home on it
  • Whether any family is a NZ citizen or visa holder
  • Tax information unless the main home exemption applies 

 

If your familiy trust doesn't have an IRD number and you are thinking about buying or selling your family home in the next 6 months, it would pay to get the IRD number application underway.  The IRD application can take a while for the IRD to process and you don't want your purchase or sale held up because of such a technicality. 

If you would like us to apply for the IRD number for your trust, you just need to email us a signed copy of your trust deed.  A non active trust declaration can then be completed so that no income tax requires are required for the trust.

 

Disclaimer: The above article is general in nature and we recommend you seek professional advice tailored to your specific personal situation.