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New Tax Treatment for Cash Collateral in Security Lending & Derivative Transactions
Effective from 1 April 2025, Commissioner of Inland Revenue has changed its stance on cash collateral. Previously, cash collateral used in security lending and derivative transactions was not considered a loan, meaning interest payments on it were not subject to Resident Withholding Tax (RWT) or Non-Resident Withholding Tax (NRWT). However, the Commissioner now views cash…
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Employee Share Scheme (ESS) Taxation in New Zealand
The New Zealand tax system includes specific rules for Employee Share Schemes (ESS), ensuring that employee benefits received through shares are taxed equitably alongside cash remuneration. IRD’s recently interpretation statement IS 25/04 explains: Definition of an ESS: An arrangement where shares are issued or transferred to employees in connection with their employment. Taxing Date (SSTD):…
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