tax facts

turning your vision into reality

Regular and consistent monitoring of both financial and non financial key performance indicators ensure you adhere to your Strategic Plan.

Risk Management controls go hand in hand with this Strategy. We like to meet with our clients at least quarterly to ensure performance improvement.

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Gift Duty

 

 
1. Gifts made on or after 1 October 2011 are no longer liable for gift duty and documents are no longer required to be filed with the IRD for any gifts made. However, the donor is still responsible to maintain records of the amount of debt that has been forgiven.

2. For gifts made before 1 October 2011, with a total value of over $12,000 in any 12-month period, the person must complete a Gift Statement and forward the same to the IRD.

Gifts of more than $27,000 in a year before 1 October 2011 is liable for gift duty.

3. For gift duty purposes, a gift is something given:
  • when nothing is received in return, or
  • when something is received in return, but its value is less than the value of the property given.
4. 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.

5. These items can all be gifts:
  • any form of payment.
  • allowing a debt to remain outstanding so that it can't be collected by normal legal action.
  • a forgiveness or reduction of debt.
  • transfers of any items (for example, company shares or land).
  • creation of a trust.
6. The table below outlines the rates of gift duty for gifts made before 1 October 2011. .

 
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
 
For more information on Gift Duty see the IRD website or contact us