Gift Duty
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 |