- Draft IRD guidance released on 30 August 2024 states that fund manager fees are GST exempt
- Previous proposal in 2022 to subject all fund manager services to 15% GST was withdrawn
- Some managers currently apply 15% GST to all services, while others follow an industry practice endorsed by Inland Revenue in 2001
- Interpretation statement applies to managed investment schemes and all related service providers
- Fees payable to fund managers for services supplied to investors are not subject to GST
- Fees payable to third-party investment managers for investment recommendations are subject to 15% GST
- Investors and fund managers should be pleased with the outcome
- Managers and administrators of managed investment schemes need to consider the impact of the draft interpretation statement on their structure
- Entities providing investment management services to managed funds need to determine if their services are subject to GST
- Draft interpretation statement focuses on unit trusts but may have wider application.
Source: minterellison.co.nz
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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