Tax and Residency

The tax residence rules are different from the New Zealand immigration residency rules.  

New Zealand Tax Resident
Non-residents are only liable for New Zealand tax on income from New Zealand sources. For tax purposes you are a non-resident if you are away from New Zealand for more than 325 days in any 12-month period, and do not have an enduring relationship with New Zealand.

The New Zealand Inland Revenue Department will consider a business entity to be a New Zealand tax resident if the entity meets any of the following conditions:

  • The company/trust/partnership was incorporated in New Zealand
  • If a company is incorporated under the New Zealand Companies Act 1993 it will be regarded as a tax resident of New Zealand
  • The control of the company/trust/partnership is exercised in New Zealand
  • If the directors of the business exercise their control of the entity from within New Zealand 
  • The center of management for the company/trust/partnership is located in New Zealand
  • The center of management or head office of the company/trust/partnership is located in New Zealand. 

 

New Zealand residents are taxed on their “worldwide income" this includes any income that you derive in a foreign country even if you do not bring the money into New Zealand. Your worldwide income could include the following:

  • an amount of interest you derive from funds you have in an offshore bank account
  • rental income
  • salary and wages paid both by New Zealand companies and offshore companies


What if I am resident in New Zealand and also another country?

If New Zealand does not have a double tax agreement with the other country you will be taxed in New Zealand on your worldwide income and you will generally be given a credit for any foreign tax paid.

If New Zealand does have a double tax agreement with the other country (where you are resident) there are tiebreaker provisions that will decide which country can tax you on your worldwide income. Generally, these tiebreaker tests are:

  • the country you have a permanent home in, or
  • if you have permanent homes in both countries or neither - then the country that your family and economic interest are in, or
  • if this is not clear then the country you spend most of your time in, or
  • if this is not clear the country you are a citizen of

Countries or territories with DTAs with New Zealand
Australia India Russian Federation
Austria Indonesia Singapore
Belgium Ireland South Africa
Canada Italy Spain
Chile Japan Sweden
China Korea Switzerland
Czech Republic Malaysia Taiwan
Denmark Mexico Thailand
Fiji Netherlands Turkey
Finland Norway United Arab Emirates
France Papua New Guinea United Kingdom
Germany Philippines United States of America
Hong Kong Poland