Any person making gifts with a total value of over $12,000 in any
12-month period must complete a Gift Statement and forward it to the
IRD. Any person who gives gifts of more than $27,000 in a year is
liable to pay gift duty.
For gift duty purposes, a gift is something given:
-
when nothing is received in return, or
-
when something is received in return, but its value is less than the
value of the property given.
If something of lesser value is given in return for a gift, the
value of the gift, for gift duty purposes, is the difference between
the two values.
These items can all be gifts:
-
any form of payment
-
allowing a debt to remain outstanding so that it can't be collected
by normal legal action
-
a forgiveness or reduction of debt
-
transfers of any items (for example,
company shares or land)
-
creation of a trust
The table below outlines the rates of gift duty. For more
information on Gift Duty see the
IRD website
or
contact us.
| Value of Gift |
Duty Payable |
| 0 to $27,000 |
NIL |
| $27,001 to $36,000
|
5% of value over $27,000 |
| $36,001 to $54,000 |
$450 plus 10% of value over $36,000 |
| $54,001 to $72,000 |
$2,250 plus 20% of value over $54,000 |
| Over $72,000 |
$5,850 plus 25% of value over $72,000
|
|
