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 2011/10 income tax year are:

Total income (NZD)	Marginal rate
0 to 14,000	10.5%
14,001 to 48,000	17.5%
48,001 70,000	30%
Over 70,000	33%

Sample income tax calculation - 2011/2012 (Year to 31 March 2012)

	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 10.5% first 14,000	1,470
Tax at 17.5% next 34,000	5,950
Tax at 30% next 22,000	6,600
Tax at 33% next 100,000	33,00
Tax impost	$47,020

In this example there will be ACC earner premium of $2,278.04 also – see further below on ACC.

Information about New Zealand:

tax planning opportunities

Last updated 28 June 2011

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

Related websites

New Zealand Inland Revenue Department
New Zealand Immigration Department

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