If you are in New Zealand for more than 183 days, you are regarded as a New Zealand tax resident and income tax will be deducted from your salary. If you are working as an independent contractor and in New Zealand for more than 183 days you will be required to pay tax on your earnings.
Non-residents are only taxed on New Zealand sourced income whereas permanent residents are taxed on worldwide income.
New Zealand Budget changes 2010
In May 2010 New Zealand’s Budget was announced. Below is a selection or relevant information that you may find useful when travelling/moving to New Zealand.
The personal income tax changes that will apply from 1 October 2010 are:
• Income up to $14 000.00 - 10.5%
• Income from $14 001.00 to $48 000.00 - 17.5%
• Income from $48 001.00 to $70 000.00 - 30.0%
• Income over $70 001.00 - 33.0%
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Income Tax for Residents
If you are in New Zealand for more than 183 days, you are regarded as a New Zealand tax resident and income tax will be deducted from your salary. If you are working as an independent contractor and in New Zealand for more than 183 days you will be required to pay tax on your earnings.
Non-residents are only taxed on New Zealand sourced income whereas permanent residents are taxed on worldwide income.
Current Tax rates for individuals are as follows:
• Income up to $14 000.00 - 12.5%
• Income from $14 001.00 to $48 000.00 - 21.0%
• Income from $48 001.00 to $70 000.00 - 33.0%
• Income over $70 001.00 - 38.0%
The tax year is 1 April to 31 March and tax returns must be filed by 7 July for the preceding tax year.
For more information about the Budget please visit:
http://www.taxguide.govt.nz/
http://www.taxpolicy.ird.govt.nz/
http://www.ird.govt.nz/
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