“Tax” is one of the most important procedures, and the regulations will vary based on the worker’s immigration status. Each country has different tax regulations, so let’s explore the personal income tax regulations in New Zealand with Koroo in the following article:
1. What income is taxed?
“Income” includes most receipts from accounts as well as some profits that may be classified as capital gains in other jurisdictions. Income includes all earnings from New Zealand.
2. Personal income tax regulations:
At this point, you will fall into one of two categories: a taxpayer who is a resident of New Zealand or a taxpayer who is not a resident. Specifically:
2.1 For non-resident taxpayers in New Zealand
This applies if you do not reside in New Zealand but still earn income from sources within New Zealand. Common examples include earning profits from property sales in New Zealand, interest from New Zealand bank accounts, or dividends from businesses in New Zealand.
In this case, you are required to pay tax on those income sources. Note that depending on the country where you live and whether there is a double taxation agreement with New Zealand, it will affect the tax rate you need to pay. Additionally, you should check for any tax exemptions under New Zealand’s tax laws.
2.2 For resident taxpayers in New Zealand
This tax applies if you are living in New Zealand. The tax for this category is based on the income you earn both in New Zealand and globally. For example:
- Income from renting property overseas
- Interest from New Zealand bank accounts
- Income or dividends from overseas investments
Similar to the above case, you may be subject to double taxation in countries that have such agreements with New Zealand.
If you return to New Zealand after a decade or are a new tax resident, you are completely exempt from foreign income tax for four years. Business owners will deduct tax from the total salary you earn at your workplace.
>>>>Note: Self-employed individuals are taxed at the same rate as others, but on a net basis — they are allowed to deduct expenses incurred in generating their income.
Below are the latest tax rates based on your total income in New Zealand:
|
Taxable Income (NZD) |
Marginal rate (%) |
|
|
Prior to 31 July 2024 |
As of 31 July 2024 |
|
|
0 – 14.000 |
0 – 15.600 | 10.5 |
|
14.001 – 48.000 |
15.601 – 53.500 | 17.5 |
|
48.001 – 70.000 |
53.501 – 78.100 | 30.0 |
| 70.001 – 180.000 | 78.101 – 180.000 | 33.0 |
| >180.000 | >180.000 | 39.0 |
(Data may change over time)
This concludes the information on personal income tax. Koroo hopes this information will assist you in your journey of living and working in New Zealand. Be sure to save this article for future reference!
DID YOU KNOW?
All Koroo clients enjoy comprehensive services, including:
- Job search and connection with reputable employers in New Zealand.
- Visa application assistance.
- Airport pick-up and transfer services.
- Work commute support.
- Assistance with accommodation search and connecting with Koroo’s customer community in New Zealand.
- Tax, SIM card, bank card support, etc.
- Support with other emerging issues.
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