- Inland Revenue released guidance on GST treatment for fund manager fees on 31 March 2025.
- The guidance addresses whether GST should be charged by fund managers of managed funds.
- In 2022, a policy change proposed a 15 percent GST on all management fees, which was later dropped due to public backlash.
- Non-KiwiSaver funds have been using two GST treatment positions accepted in practice.
- Larger managers treated 10 percent of services as subject to 15 percent GST, with 90 percent exempt.
- Other managers applied a 15 percent GST rate to all services.
- New guidance states fees for fund management services are financial services, so 15 percent GST does not apply.
- GST treatment of outsourced services depends on the authority and terms of the third party’s appointment.
Source: taxathand.com
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.
