Tax

New Zealand's tax system

New Zealand’s laws require people and organisations to pay taxes.

The New Zealand Government uses these taxes to pay for government expenditure. Inland Revenue is the main government department that collects tax payments and administers the New Zealand tax system.

As an individual, you are a New Zealand resident for tax purposes if you meet any of the following conditions:

• you are in New Zealand for more than 183 days in any 12-month period 
• you have an “enduring relationship” with New Zealand. This may mean you have immediate family living here; you intend to live here; you are developing a business here; you keep personal possessions here permanently.

For a more definitive explanation go to the Tax residency area of the New Zealand Inland Revenue Department (IRD) website at www.ird.govt.nz.

The residency rules set out in the tax laws are different from the normal citizenship rules. You can be a New Zealand resident for tax purposes even though you do not hold New Zealand citizenship.

As a New Zealand resident for tax purposes, you must pay income tax on all your income received both in New Zealand and overseas.

The tax rate on your income depends on how much you earn.

If your income is from salary, wages, or a benefit from Work and Income; your tax will be automatically deducted under the pay-as-you-earn (PAYE) system. This means the pay you receive has already had tax deducted. If you earn income that hasn’t had tax deducted before you receive it, you are still required to tell Inland Revenue about this income and pay tax on it.

New Zealand’s tax year runs from 1 April to 31 March. You can put in a tax return after 31 March each year to see if you are eligible for a refund.

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IRD numbers

An IRD number is a unique number that identifies all your tax payments and records at the Inland Revenue Department (IRD). You will need an IRD number if you work, open a bank account or if you are required to pay tax in New Zealand.

You need to give your IRD number to your employer and your bank. Otherwise, your employer or bank will be required to deduct tax at a higher “no declaration rate” of 45% from your salary or 39% from your interest.

To apply for an IRD number from Inland Revenue, you need to fill in an IRD number application – individual (IR 595) form. Return this completed form to Inland Revenue with identification, such as a copy of your birth certificate or current passport.

Where to go for help on tax matters

All the information you need on the New Zealand tax system and how to get an IRD number can be obtained from the Inland Revenue Department.

Go to the Inland Revenue website at www.ird.govt.nz.

You can also contact them on 0800 277 774 from within New Zealand or on +64 4 978 0779 if you are calling from overseas.