Accounting Issues
From GST to withholding tax to capital gains, a good accountant helps reduce your taxable exposure, we recommend , a highly qualified and experienced tax specialist accountant. Once you sign a contract, contact Peter to set up your GST account.
- GST – 7% payable on all new property purchases. GST is deferred if you intend to rent your property, there are rules so it is prudent to consult your financial advisor.
- Withholding Tax – applicable for foreign owners, 25% of all revenue is submitted by the rental company until a tax return is submitted. Not all rental companies hold these funds – consult with your accountant and rental company for further information.
- Capital Gains Tax – once you sell your property you will be required to pay tax on the capital gain. The ownership structure will determine the amount of tax. A good rule of thumb – each property owner is required to pay 11% on 1st $60k stepping up to 22% of the balance. Again consult your accountant for specific details or changes. This is not intended to be accounting advice.
