17 New Zealand Tax Facts
Wondering what the tax system is like in New Zealand?
If you live and work in New Zealand, you must pay tax, regardless of whether you're a resident or non-resident for tax purposes.
Tax can be a complicated subject especially if you’re trying to understand the tax system of a country you just moved to.
From tax return deadlines to all of the different tax documents, it can be confusing!
That's why at Taxback.com, we have put together this article, bringing you 17 useful facts about the New Zealand tax system.
Check out our top 17 New Zealand tax facts below:
1. The New Zealand tax year runs from April 1st to March 31st of the following year.
2. In order to be deemed a non-resident for tax purposes in New Zealand, you must stay in New Zealand for less than 183 days in any 12-month period and you must not have an “enduring relationship” with New Zealand.
3. Non-residents in New Zealand are only taxed on income they earn from New Zealand sources.
The average New Zealand tax refund is $550
4. Residents in New Zealand are taxed on all of their income from sources across the world.
5. If you work in New Zealand, you must have an IRD number. You can apply for one here.
Your IRD number is a unique tax number that the Inland Revenue Department of New Zealand will issue to you. This ensures you are taxed at the correct rate. Without an IRD, your income will be taxed at the highest rate possible.
6. A Summary of Earnings is a form that the New Zealand Inland Revenue Department will issue to you at the end of the tax year.
This form outlines your earnings and the tax you paid during the tax year. When you apply for a tax refund, you will need your Final Payslip or Summary of Earnings.
7. You can go back 4 years to file your income tax return in NZ and claim your New Zealand tax refund.
The average New Zealand tax refund is $550
8. There is no payroll tax in New Zealand.
9. New Zealand's Goods and Services tax (GST) is a tax of 15% on goods and services (financial services and residential rents are exempt).
10. No social security tax - New Zealand’s social security is funded by general taxation.
Download your FREE New Zealand Tax Guide
11. No inheritance tax in New Zealand.
12. No state/local tax system in New Zealand.
13. No capital gains tax except on certain particular forms of investments.
14. In New Zealand, there is no tax on healthcare.
15. For the first few years of residency in New Zealand, there is a 4 year tax concession on pensions and investment income from overseas.
16. You can get a FREE New Zealand tax refund estimate with Taxback.com.
If you are interested in how much money you can get back, the easiest way to check this is using our income tax refund calculator for NZ.
17. You can apply for your New Zealand tax refund with Taxback.com! Our highly qualified tax experts will ensure you receive the maximum legal tax refund and claim every tax relief you are entitled to!
To get started all you have to do is apply online today and our team will take care of the rest!
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