Tax residence rules are different from the normal New Zealand immigration residency rules. You can still be a NZ tax resident and pay tax for your worldwide income when not living in NZ and vice versa.
This article helps you test whether you are a New Zealand tax resident, and understand your tax obligations.
|Tax residency||Taxable income|
|NZ tax residents||Your worldwide income is subject to NZ tax laws.|
|Non-residents||Only NZ-sourced income is taxable.|
If you are a NZ tax resident, your income earning from other countries will also be subject to New Zealand tax law, even if you did not bring that income into this country.
New Zealand has Double-tax-agreements with many countries. In most situations, you won’t be taxed twice.
You’re a New Zealand tax resident if:
- you’ve been in New Zealand for more than 183 days in any 12-month period*; or
- you have a permanent place of abode (see below) in New Zealand.
*Except for 1) you’re away from New Zealand in the service of the New Zealand government; 2) you are an overseas seasonal worker.
Permanent place of abode
This question is similar to “Is New Zealand your home?”.
To satisfy this, you must have a house or other dwelling that you could live in NZ. But this isn’t enough.
The following questions should also be considered:
- Do you intend to return to NZ? For how long?
- Past use of your dwelling in NZ
- Your family, social, employment ties with NZ
Individuals with strong ties to New Zealand are likely to have a permanent place of abode in New Zealand, but all of the circumstances need to be considered.
Becoming a NZ tax non-resident:
If a New Zealand tax resident is absent from New Zealand for a period of 325 days in any 12-month period they will become non-resident, unless they continue to satisfy the permanent place of abode test.
For more information, contact one of our tax advisory team by emailing firstname.lastname@example.org or simply call 09 281 8885 to discuss your situation today!