Tax Facts
Gift Duty
Any person making gifts with a total
value of over $12,000 in any 12-month period must complete
a Gift
Statement and forward it to the IRD. Any person
who gives gifts of more than $27,000 in a year is liable
to pay gift duty.
For gift duty purposes, a
gift is something given when:
 |
Nothing is received in return; or |
|
Something is received in return, but its value
is less than the value of the property given. |
If something of lesser value is given in return for
a gift, the value of the gift, for gift duty purposes,
is the difference between the two values.
These items can all be gifts:
|
Transfers of any items (for example, company
shares or land). |
|
Any form of payment. |
|
Creation of a trust. |
|
A forgiveness or reduction of debt. |
|
Allowing a debt to remain outstanding so that
it can't be collected by normal legal action. |
Gifts made to create a charitable trust,
or in aid of such trust, society or institution are
exempt from gift duty. From 1 July 2008 that charitable
trust, society, or institution will need to be registered
by the Charities Commission for the gift to be exempt
from gift duty.
The table below outlines the rates of gift duty. For
more information on Gift Duty give us a call or visit
the IRD
Gift Duty Guide IR194
|
Value of Gift |
Duty Payable |
|
0 to $27,000 |
NIL |
|
$27,001 to $36,000 |
5% of value over $27,000 |
|
$36,001 to $54,000 |
$450 plus 10% of value over $36,000 |
|
$54,001 to $72,000 |
$2,250 plus 20% of value over $54,000 |
|
Over $72,000
|
$5,850 plus 25% of value over $72,000 |
|
|
|
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