- The Commissioner issued an interpretation statement on the GST treatment of fees related to managed funds on 31 March 2025.
- The statement addresses fees received by fund managers and third-party suppliers for services to managed funds.
- Immediate implementation may be challenging for some taxpayers due to system and contractual changes.
- The Commissioner will not enforce compliance for GST periods from 1 April 2025 to 31 March 2026.
- Taxpayers are expected to adopt the new position by 1 April 2026.
- Managed investment funds are crucial for New Zealanders’ savings, involving fund managers, supervisors, and custodians.
- The statement clarifies GST issues related to financial services exemptions under the Goods and Services Tax Act 1985.
- Key issues include GST treatment of fees to fund managers, outsourced administrative services, and outsourced investment management services.
- Fees to fund managers for services to investors or the fund are exempt from GST as they are considered financial services.
Source: taxtechnical.ird.govt.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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