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Thread: Do I qualify for NON-TAX RESIDENCY?

  1. #1
    Join Date
    Jan 2010

    Default Do I qualify for NON-TAX RESIDENCY?

    Good day,

    I am considering working abroad for a few years - and naturally the issues of tax came up :

    I am on a Permanent Residence Visa, If I am out of the Country for more than 325 days per year, not receiving any income in NZ, only have furniture and a vehicle in NZ which will be stored in long term storage will I qualify for Non-Residency Tax status or will I still be taxed on my overseas income?

    I did have a look on the IRD websites but can't find any straight answers, and would like to know the situation before I take the leap.

    Any advise welcome!

    Thank you!

  2. #2
    Join Date
    Oct 2006
    Waterloo, Lower Hutt


    The key criteria that captures more people is the 'enduring relationship to NZ' test.

    IRD can consider any number of factors in deciding whether you have an enduring relationship and anecdotally they have widen the net in this area recently.
    IRD have a guide on the website which highlights some of the factors they consider, which include personal property like cars, and furniture. They also consider if you have intentions of returning to NZ or have any social ties (family, memberships or networks).

    Previously I would have expected that you probably would not be recognised as a tax resident in the following tax year, though with recent changes in IRD interpretation this is more uncertain. Once you are recognised as a tax resident, it is becoming increasingly difficult to 'cut' that status.

    Hopefully others on this site who work in the tax area may be able to provide more guidance on how IRD currently view this area.

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