Latest / Early Edition with Ryan Bridge / Rachel Simpson: Business NZ immigration specialist on the new migrant tax rules

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Rachel Simpson: Business NZ immigration specialist on the new migrant tax rules · Early Edition with Ryan Bridge

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  Speaker 1: So the government's pushed to keep top talent and investors
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  Speaker 1: in the country. Tax tweaks being made, we knew about these.
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  Speaker 1: Simon Watsow has introduced the bill. Migrants will no longer
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  Speaker 1: be taxed on estimated overseas income, only on what they
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  Speaker 1: actually earn. Rachel Simpson is an immigration specialist with Business
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  Speaker 1: New Zealand, joining me this morning. Rachel, good morning, Good morning, Ryan.
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  Speaker 2: How are you very well?
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  Speaker 1: How are you very well?
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  Speaker 2: Thank you very good.
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  Speaker 1: Now why is it that we were basing it on
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  Speaker 1: estimated overseas income to begin with?
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  Speaker 2: Well, what the text bill does is make sure that
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  Speaker 2: the immigration and tech settings makes sense with each other.
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  Speaker 2: So in the case of the foreign Investment SUND rules,
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  Speaker 2: there are quite a few people being caught out by
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  Speaker 2: double taxation in two different countries. So we think it's
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  Speaker 2: going to be a positive move to make sure that
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  Speaker 2: we can attract particularly top tech talent, to make sure
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  Speaker 2: that the foreign Investment sundrules realize actual income from things
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  Speaker 2: like share sales rather than estimated.
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  Speaker 1: How many people are we talking about.
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  Speaker 2: Here, Well, we're not quite sure that of the push
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  Speaker 2: onness is to be able to attract that talent to
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  Speaker 2: the country. So hopefully this will make New Zealand far
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  Speaker 2: more attractives to some of that talent to be able
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  Speaker 2: to come here and contribute their skills and expertise to
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  Speaker 2: the New Zealand tech community as well.
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  Speaker 1: Everyone talks about the digital nomads, is that what we're
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  Speaker 1: talking about here? Will that they be interested in this?
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  Speaker 2: Yeah? So the bill has two parts to it. So
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  Speaker 2: one part takes care of the foreign Investment sundrules. The
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  Speaker 2: other part makes it clear that you're coming here for
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  Speaker 2: a short period of time, you're being paid by an
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  Speaker 2: overseas company, you're paying tax in that overseas country. Then
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  Speaker 2: we won't double texting on that either. So if you
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  Speaker 2: think about things like social media influences, for example, that
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  Speaker 2: coming here and helping promote New Zealand tourism activities, then
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  Speaker 2: the text will also takes care of making the rules
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  Speaker 2: around that clear.
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  Speaker 1: It means that the government will miss out on tax
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  Speaker 1: take though as a consequence, right.
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  Speaker 2: Well, if you look at the Foreign Investment fundrules, they're
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  Speaker 2: still text on it. They're just text on it when
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  Speaker 2: they actually realize that income. So there is still texation
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  Speaker 2: coming in, but it's far more practical in a common
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  Speaker 2: sense approach to it when the income has actually realized fear.
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  Speaker 1: But with a digital nomad, if you're coming here and
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  Speaker 1: you know you're, as you say, an influencer, a social
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  Speaker 1: media influence, they're coming here and taking photos of yourself
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  Speaker 1: with a bikinio on the remarkables, then you're being taxed
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  Speaker 1: in the UK. You will no longer be taxed here
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  Speaker 1: as well.
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  Speaker 2: Well. Yeah, and I think for that situation, what you
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  Speaker 2: end up doing is getting into an argument argument around
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  Speaker 2: what's the nature of work. So this is a very
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  Speaker 2: real case. There has been social media influencers who have
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  Speaker 2: come here and as I said, this aligns the immigration
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  Speaker 2: settings as well. So make sure that people know they're
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  Speaker 2: not in breach of their immigration conditions if they're here
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  Speaker 2: on a visit of visa, but they're doing some of
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  Speaker 2: that promotion work while they're here as well.
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  Speaker 1: Interesting stuff, Rachel, Thank you for that, Rachel Simpson, who's
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  Speaker 1: immigration specialist at Business New Zealand. For more from Really
• 3:00
  Speaker 1: Edition with Ryan Bridge, listen live to News Talks it
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  Speaker 1: Be from five am weekdays, or follow the podcast on iHeartRadio.