Property tax compliance requirements

The Taxation (Land Information and Offshore Persons Information) Bill was passed by Parliament on 10 September 2015.

It amends land transfer and tax legislation to create two new Acts:

  • the Tax Administration Act 2015
  • the Land Transfer Amendment Act 2015.

LINZ collects additional information when people buy, sell or transfer property. The information is passed to Inland Revenue, to follow up on those who have property tax obligations – whether they are New Zealanders or from overseas.

Land Transfer Tax Info flowchart

[Process flowchart - click to enlarge or download the diagram]

What lawyers and conveyancers need to know

Under the legislation:

  • Property buyers/sellers must provide their IRD number and other tax details when transferring property unless the property is the main home or another non-notifiable reason applies.
  • Trustees, and people who have claimed the main home non-notifiable reason more than 2 times within 2 years, may not claim the main home non-notifiable reason.
  • Offshore persons (as defined in section 3(1) of the Tax Administration Act 1994) may not claim the main home or any other non-notifiable reason.
  • Those who are tax resident in another jurisdiction must also provide the equivalent of their IRD number in that country (if the person is able to claim the main home exemption they do not need to provide this information).
  • Offshore persons who need to apply for a New Zealand IRD number will be required to have an operational New Zealand bank account as a pre-requisite.

Find out when and how to enter property tax information in Landonline (PDF 358KB)

Read FAQs about the changes

See examples of how the requirements apply

What is LINZ’s role?

LINZ will capture the data in Landonline when properties are bought, sold or transferred.

When is a tax statement needed?

When transferring freehold, leasehold, life estates, stratum estates, licences to occupy and other specified estates in land as defined in the Land Transfer Act 1952.

A tax statement isn’t needed if the transfer relates to Māori land as defined by Te Ture Whenua Māori Act or is part of a Treaty of Waitangi settlement process.

Find out more about the Bill on the Inland Revenue website

What information should I provide under the new requirements?

For edealing transactions, the Act does not require tax statements to be submitted to or held by LINZ. Instead, the person who signs the tax statement must give it to their lawyer who must hold the tax statement on their client file along with the A&I form (for the required 10 year retention period). From 28 September 2015 new data-entry screens have been added to Landonline which the lawyer (or their support staff) will then use to enter the relevant tax information based on the details provided in the tax statement.

Got a question?

For registered Landonline users, submit a 'Titles Information' request in Landonline.

For other users, send an email to customersupport@linz.govt.nz

Before you submit an enquiry, read our property tax FAQs and the notes section of the Tax Statement form.

Last Updated: 12 December 2016