Expatriate tax ebook - New Zealand
Facts and figures
Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation
Pre arrival procedures
Nothing is required for tax purposes. However, consideration of the possible impact of various New Zealand tax regimes would be wise to ensure no tax planning opportunities are missed.
Employment visas
Work permits may be required in some situations. A visa or permit to work in New Zealand is not required where a person is:
- a New Zealand citizen or holds a New Zealand residence permit; or
- an Australian citizen, or an Australian resident with a current permanent residence visa or a current resident return visa.
For more information visit the New Zealand Immigration website www.immigration.govt.nz.
Tax year
The New Zealand fiscal year runs from 1 April to 31 March.
Tax returns and compliance
New Zealand operates a self-assessment regime whereby taxpayers file an annual tax return and self-assess the tax liability for the year. The filing date for an individual’s tax return is 7 July following the 31 March year-end balance date. The filing due date is extended to the following 31 March where the tax payer uses a recognised tax agent (such as Grant Thornton).
Income tax rates
Individuals are taxed at progressive rates according to total taxable income. Rates for the 2008/09 income tax year are:
|
Total income (NZD) |
Marginal rate |
|---|---|
| 0 to 38,000 | 19.5% |
| 38,001 to 60,000 | 33.0% |
| over 60,000 | 39.0% |
Sample income tax calculation - 2008/2009 (Year to 31 March 2009)
|
NZ$ | |
|---|---|
|
Base employment income |
100,000 |
|
Accommodation |
30,000 |
| Cost of living allowance | 45,000 |
Gross income |
175,000 |
Less |
|
|
Income protection insurance |
(4,000) |
|
Tax return preparation fees |
(1,000) |
|
(There are no other possible deductions in this scenario) |
|
Total deductions |
(5,000) |
Taxable income |
170,000 |
Tax at 19.5% first 38,000 |
7,410 |
|
Tax at 33.0% next 22,000 |
7,260 |
|
Tax at 39.0% balance |
42,900 |
Tax impost |
$57,570 |
Information about New Zealand:
Last updated 14 May 08
This information has been provided by Grant Thornton New Zealand, a member firm within Grant Thornton International Ltd and is for informational purposes only. Neither Grant Thornton New Zealand or Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
Disclaimer
Contact us
For further information on expatriate tax services in New Zealand please contact Andy Crossen