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Thread: Who are tax resident and who are non tax resident?

  1. #1
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    Default Who are tax resident and who are non tax resident?

    Hi folks,
    I need to know when you become tax resident in NZ? and when you are non tax resident?
    If I have resident visa and enter NZ , at same day I will be treated as Tax resident or I am tax non resident? And till what time my status will be tax non resident if that is true?

  2. #2
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    Quote Originally Posted by zednic20 View Post
    Hi folks,
    I need to know when you become tax resident in NZ? and when you are non tax resident?
    If I have resident visa and enter NZ , at same day I will be treated as Tax resident or I am tax non resident? And till what time my status will be tax non resident if that is true?
    Have you checked with IRD here http://www.ird.govt.nz/international...ency/personal/

    It answers questions like 'When am I considered a tax resident of NZ?' and more...

  3. #3
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    Thanks Ralf,
    How much do they deduct tax till we become resident in NZ? (before 184 days , how much tax they deduct)
    Example:- In Malaysia for expats till the person becomes Tax resident (before completion of 182 days), employer deducts 26% flat, but later on after 182 days of completion employer deduct the tax based on tax slabs. In NZ do they follow similar to this, if it is then how much tax they deduct.

    Also if I don't have a job in NZ for initial period (on resident visa), still do I need to apply for IRD? and Do I have to pay any tax during that period?

  4. #4
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    All income is taxed at a progressive tax rate.
    Generally the income you earn in each pay is converted to an annual amount and taxed at the relevant rate.

    More information on tax rates is available at Income Tax Rates

  5. #5
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    So whether I am resident or not once I am in NZ and Working they will deduct my tax as per their tax slabs.

    Consider a scenario where I come to NZ in Oct 2013 on resident visa and searching jobs. Then I have few questions as below

    1) Can I still apply for IRD number?
    2)Do they cut my taxes even though I don't have job in hand? (or they will start deducting it the moment I get job in NZ)

    3)Am I eligible to apply for PHO card?

  6. #6
    Join Date
    Sep 2008
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    Auckland
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    1) You can and should apply for an IRD number as soon as possible, unless you have no intention at all to work in NZ at any time whatsoever.
    2) If you are earning a salary or wage, tax will be deducted by your employer every time before you receive your pay. The amount of tax deduction will be based on your annualized earning. Your employer will follow a tax deduction table provided by the IRD.
    3) I don't know there's something known as PHO card. Do you mean CSC (Community Services Card) or PHO registration? CSC eligibility does not depend on your tax residency status. A resident (by immigration definition) generally is eligible to apply for CSC if his/her family income is below certain threshold. You need to check out their website for details. An immigration resident can also register with a PHO.

  7. #7
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    Thanks udng
    What I understood from your reply is that I should apply for IRD asap and my tax will be deducted only when I get a job and through my employer. Sounds good.
    PHO means (Public Health Organization) {health care} is it same as Community Services Card. Also every employer deducts ACC levy from annual pay? or it depends upon employer to employer?

  8. #8
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    You should register with a GP (Doctor) as soon as possible. This is because not all GP medical practices accept new patients and when you register with a doctor you do not qualify for the reduced fees until the next quarterly funding period. Each medical practice belongs to a PHO, so you join the PHO through your doctor.

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