When is a tax return form needed (IR3)?

Folks,

I'm just trying to understand the tax system in NZ compared to say UK or Ireland or France.

In UK if I'm a permanent salary employee, the tax is doing at the source (via the employer). assuming that I'm no other income it's usually not necessary to submit a tax return for the year.

In France, if I'm a permanent salary employee, the tax is partly done at the source (via the employer). But it's mandatory to also submit a tax return even if I've no other income. Basically it means people get taxed twice in France which is a bit of a pain.

So what's the situation in NZ? From what I understand salary employee is taxed entirely at the source (via employer) so normally no other tax return is needed.

I guess a salary employee only needs to submit a IR3 if he has additional income (like interest from bank account or rent, etc).

Is this correct? and if not then what's the situation in NZ?

Many thanks.

Starkhorn

thats basically right. bank interest also has tax deducted at source so even if you have some income from this you still may not need a personal tax summary at the end of the year.

this gives some info on when a tax summary might be needed
http://www.ird.govt.nz/income-tax-in...axsummary.html

by the way IR330 is the form you use to change your tax code - you complete it when you start a new job. everyone completes one.

i think the one you mean is the individual tax return which is IR3.

Hi Trigirl,

Yes indeed I did mean IR3 instead of IR330 sorry about that.

Ok so the IR3 then is more or less for people who rent out other properties or are self-employed etc, etc?

Cheers
Starkhorn

Ok from that link you sent me, I found the online calculator and I just used the "Do you need to file an IR3 return or receive a personal tax summary for 2006?" to see if I need to do the IR3 form.

http://www.ird.govt.nz/calculators/k...dualincometax/

Thanks for that, I hadn't clicked on any of those calculator links before.

Cheers
Starkhorn