Zealand residents are liable for income tax on their worldwide
income. If you are a New Zealand tax resident, you will need to
pay income tax on all income you receive from both New Zealand
If you have taxable activity in New Zealand, you will need to pay
Goods and Services Tax (GST).
You are a New Zealand resident for tax purposes if:
- You are overseas for less than 325 days in a 12 month period.
- You are overseas in the
service of the New Zealand Government.
- You have an enduring
relationship with New Zealand.
To decide whether you have an
enduring relationship with New Zealand, Inland Revenue considers
things such as:
- Whether you are here for
continuous periods from time to time
- Whether you own, lease or
have access to property in New Zealand
- Your social ties (where your
immediate family lives, if you have children being
educated here, if you belong to any New Zealand
- Your economic ties (if you
have bank accounts, credit cards, life insurance,
investments or superannuation funds here)
- Your employment (if you work
- Your personal property (if
you own or keep possessions here)
- Whether you intend to live in
- Whether you receive welfare
benefits, pensions and other payments.
Please note that you can keep
similar ties, or even a home, in other countries, but still be a
New Zealand resident for tax purposes. If you have an enduring
relationship with New Zealand, you will always be a tax resident.
You may be a tax resident in New Zealand and another country.
This means you are resident in two countries under the tax laws
of each of those countries. If both countries tax their residents
on worldwide income, you could be taxed twice on the same income.
New Zealand has double tax agreements with many other countries.
These agreements establish which country has the first or sole
right to tax certain types of income. Inland Revenue provides
expert advice on these issues.
An IRD number is a unique identifying number that you use for all
your contacts with Inland Revenue (similar to a bank account
number). You will need an IRD number before you start a job or
open a bank account. Otherwise, your employer or bank will deduct
the no declaration rate of tax from your salary. This
rate is much higher than the standard deduction rates and will
significantly reduce the net income you receive.
You can apply for a number by filling in the appropriate
application form (IR595). This form needs to be completed and
returned to Inland Revenue with identification, such as a copy of
your birth certificate or passport.
If you need to apply for IRD numbers for your children, fill in
the appropriate form, which is either:
- An IRD number application - children (IR594) if a parent/caregiver is applying
on behalf of the child
- An IRD number application - individual (IR595) if the child is applying for
himself or herself.
Send the application form to
Inland Revenue, along with a copy of the childs birth
certificate, passport or certificate of New Zealand citizenship.