Watts’ FIF rule changes set New Zealand up to miss out

Revenue Minister Simon Watts is two weeks behind the curve with today’s announcement on Foreign Investment Fund (FIF) rule changes, says Taxpayers’ Union Spokesman James Ross.

“The FIF rules are one of the biggest deterrents to foreign investment in New Zealand, and today’s changes barely scratch the surface. The real question is: why should New Zealand tax foreign assets that never even touch our shores?”

“To be competitive, New Zealand needs to scrap the FIF rules for new tax residents altogether. Tweaking them won’t cut it.”

“Any savvy international investor will see right through this. The old FIF rules still apply to overseas investments acquired after moving here, so this change is meaningless for active investors—especially the tech talent the Government claims to want to attract.”

“Two weeks ago, US President Donald Trump unveiled a ‘Gold Card’ visa, exempting foreign income from local tax. Meanwhile, New Zealand’s Government is still fiddling with outdated rules that drive investors away.”

“This is a headline-grab, not a serious attempt to 'Go for Growth'.”

The Taxpayers’ Union is releasing a full briefing paper on how to fix FIF rules in the coming weeks.