Inland Revenue recently released draft interpretation statement PUB00390: GST – Definition of a Resident. This item intends to provide guidance on the meaning of the term “resident” for GST purposes. The GST definition of resident differs from the income tax definition:
- By extending it to include a person who has a “fixed or permanent” place in New Zealand, where that place is related to a taxable activity carried on by the person in New Zealand
- For unincorporated bodies, it provides for a residence test based on its centre of administrative management
- For individuals, the definition differs for the commencement and end dates of residency when applying the day-count test.
In our view this statement will be a useful guide for practitioners and is clear and easy to read.