If you are a New Zealander, now living overseas, you may still need to file a tax return in New Zealand.
Even though you may have departed, you may have been a New Zealand resident for tax purposes in the year that you were here. Whether or not you were a resident is a question of fact, and we can help you work that out.
We can prepare your New Zealand income tax return and get it lodged. If you are entitled to a refund, we can get that to you without you having to come back to New Zealand.
Living overseas for short periods with the intention of returning
You are almost certainly still a New Zealand tax resident with income tax obligations in New Zealand, even if you earn income overseas.
Living overseas indefinitely or for a fixed period
Unless you have severed personal and business ties with New Zealand you are likely to be a New Zealand tax resident, in spite of living overseas.
Resident or non-resident
How it’s decided In brief, through a combination of facts and behaviours. Inland Revenue applies a number of tests to work out your status. The stronger your ties with New Zealand, the more likely you will be seen to be a New Zealand tax resident, even if you earn your primary income overseas.
New Zealand tax residents If you’re a New Zealand tax residents you’ll pay tax in New Zealand on all your worldwide income. This is income you get from New Zealand as well as from all other countries.
Your worldwide income includes income from another country, even if you don’t bring the money into New Zealand. For example, your worldwide income could include:
- interest earned in an offshore bank account
- rental income
- salary and wages paid both by New Zealand companies and offshore companies
- foreign pensions
If you’ve received overseas income that’s also been taxed in another country, you may be entitled to a credit for the tax already paid.
New Zealand tax non-residents A non-resident files a special IR3NR return and pays tax in New Zealand only on income derived in New Zealand.
Working it out
Sometimes it’s not clear whether you are a New Zealand tax resident or not. Inland Revenue applies a number of tests but some of them are complex and there are “grey” areas. We can help you work out your position.
If you need to file a return in New Zealand we can help you with that.
Call Jeff on 027 699 5522 to discuss your position