Johnston Law

01/09/2026

Inland Revenue has released draft guidance considering whether an Active Investor Plus (AIP) visa holder can become a New Zealand tax resident under the permanent place of abode test. This guidance is a welcome confirmation of the position we have long taken when advising clients: there is no special tax residency regime for AIP investors - tax residency is determined under the existing tax residency rules. You can read our latest article on the draft guidance here ⬇️

Inland Revenue has released draft guidance addressing a question that has generated significant discussion since the introduction of the Active Investor Plus (AIP) visa: can an AIP visa holder become a New Zealand tax resident under the permanent place of abode (PPOA) test?

28/08/2026

Happy Daffodil Day 💛 Today is a chance to come together in support of the many people affected by cancer and to help raise funds for the Cancer Society of New Zealand. Cancer touches the lives of so many of us, whether personally or through the experience of family members, friends, colleagues, or loved ones. Our thoughts are with everyone currently facing this journey. If you're able, keep an eye out for Daffodil Day collectors or consider making a donation at daffodilday.org.nz.

11/08/2026

The Opportunity Party's proposed Tax Reset has generated significant discussion recently, particularly its proposed Land Value Tax, Citizen's Income, and compulsory KiwiSaver 2.0 scheme. Given the level of interest, we've put together a practical overview of the policy and what it could mean for homeowners, investors, business owners, farmers, and those with cross-border interests. While much of the focus has been on the proposed Citizen's Income and income tax changes, some of the more interesting questions arise from the Land Value Tax itself. In particular, we explore the potential impact of deferred tax liabilities, the accumulation of Inland Revenue debt over time, and whether deferral mechanisms could unintentionally reduce housing mobility by limiting the equity available when owners choose to downsize. As with all tax policy proposals, the detail will ultimately be critical. Our article looks beyond the headlines and considers some of the practical implications if these proposals were ever implemented.

The Opportunity Party has released a wide-ranging tax and welfare policy built around a clear objective: tax land more heavily, tax work differently, replace much of the benefit system with universal payments, and move retirement funding towards compulsory saving. This article is a practical overvie...

21/07/2026

We are delighted to share that Johnston Law has once again been recognised at the APAC Legal Awards, receiving:
🏆 Tax Law Firm of the Year – New Zealand�🏆 Cross-Border Tax Services Excellence Award

We are passionate about helping clients navigate international and cross-border tax issues, and recognition like this makes all the hard work worthwhile.

For us, these awards are a reminder that you do not need to be a large firm to make a meaningful impact. We are incredibly grateful to our clients, referral partners and professional networks who continue to place their trust in us.

Thank you to everyone who has supported Johnston Law on this journey. We are proud of what we have built, and we look forward to continuing to provide practical, specialist advice to New Zealanders and clients around the world.

Julia & Michaela

09/07/2026

Mānawatia a Matariki ✨
This is a time to come together, remember those who are no longer with us, reflect on the year that has been, celebrate the present, and look forward to opportunities for the future. We wish all of our clients, colleagues and community a meaningful Matariki, and hope you enjoy a safe and relaxing long weekend with whānau (family) and friends.

09/07/2026

Thinking of working remotely from New Zealand? 🌎 The new "digital nomad" tax rules may be more complicated than they first appear. From 1 April 2026, certain overseas visitors can spend up to 275 days in New Zealand while continuing to work remotely without automatically becoming New Zealand tax residents. However, there are important conditions and potential pitfalls.
In our latest article, we discuss:
✅ Who can qualify for the concession
✅ Why the permanent place of abode test still matters
✅ The risks for business owners, directors and senior executives
✅ How working from New Zealand can create tax issues for an overseas company
✅ What happens if you stay longer than 275 days
For many digital nomads the rules will work exactly as intended. For others, obtaining advice before arriving in New Zealand could avoid unexpected tax consequences. Read our full article ⬇️

From 1 April 2026, New Zealand introduced a new tax concession for certain overseas visitors who spend an extended period in New Zealand while continuing to work remotely. The change is designed to assist "digital nomads" and other remote workers who remain tax residents overseas and whose work has....

23/06/2026

There has been plenty of discussion around the Green Party’s proposed 2026 tax changes - but what do they actually mean in practice? In our latest article, we unpack the key proposals and outline what they could mean for individuals, families, and business owners in New Zealand.

The Green Party has released its 2026 tax policy with a clear objective: shift the tax burden away from wages and towards wealth, large corporates, and capital. At a high level, the proposal is simple in concept but significant in impact. We have prepared a practical overview of the key measures and...

11/06/2026

We’re celebrating 3 years of Johnston Law today.
From day one, our focus has been simple — deliver clear, practical tax advice and build long-term relationships with our clients.

Three years on, we’re incredibly grateful for the trust our clients and referral partners have placed in us, and for the opportunity to meet and work with such wonderful people.

Thank you for being part of the journey

28/05/2026

Budget 2026 and financial arrangement rules for migrants

Today’s Budget includes a welcome and long-awaited proposal to reform New Zealand’s financial arrangements rules — particularly for individuals holding investments in foreign currencies.

These rules have long created uncertainty for internationally connected clients. Because income is recognised on an accrual basis, unrealised foreign exchange movements can drive tax outcomes that bear little resemblance to actual cashflow.

For migrant clients in particular, this has meant exposure to volatile and sometimes unexpected tax positions year to year.

The proposed changes are a constructive step forward.
Key points include:
*Allowing certain taxpayers to calculate income in a foreign currency, reducing exposure to unrealised FX movements
*Targeted relief where cross-border double taxation arises
*A tailored approach for Active Investor Plus visa holders to avoid “on-arrival” tax distortions
*Excluding lower-risk, everyday foreign currency arrangements (such as personal accounts and mortgages) from the regime altogether.

If enacted as proposed, these changes should significantly improve certainty, align tax outcomes more closely with economic reality, and make New Zealand a more workable jurisdiction for globally mobile individuals.

Further, we are pleased to see the FIF de-minimus has been doubled to $100,000, meaning those with FIF investments under $100,000 will no longer need to account under the complex FIF rules.

Best of all, in our opinion, is the extension of the RAM FIF method to all taxpayers.

From our perspective, these are sensible and pragmatic shifts — and reflects the increasing complexity of cross-border investment and migration.

As always, the detail will matter, particularly around eligibility and how these rules interact with existing regimes (including FIF and transitional residency).

We will be watching closely as legislation is introduced. These changes are not included in the budget Bill, so we will need to hope they are enacted prior to the election, or are re-introduced by the newly formed government.

15/05/2026

We are proud to show our support for Pink Shirt Day today 👚 It is an important reminder of the power of kindness, inclusion, and speaking up against bullying in all its forms. At Johnston Law, we believe everyone deserves to feel safe, respected, and valued - whether in the workplace, the classroom, at home, or in the wider community. By standing together, we can help create environments where people feel supported and heard - not just today, but every day.

Kōrero Mai, Kōrero Atu, Mauri Tū, Mauri Ora - Speak up. Stand together. Stop bullying.