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Thread: Temporary tax exemption on foreign income question

  1. #1
    Join Date
    Nov 2017
    Location
    Germany
    Posts
    162

    Default Temporary tax exemption on foreign income question

    Maybe someone else has some experience with this situation and can provide some insight.

    We're not yet moving permanently to NZ, but I was hoping to move some money into an NZ account in anticipation of buying house when we do arrive. We're here for a short visit and went down to the IRD office to apply for a tax number, and was given a Form 595, "IRD number application - resident individual" to complete. On that form, on Question 9, it asks if I qualify for a "temporary tax exemption on foreign income." From what I've read on IRD's site (and this forum!), it seems as though in order for this to take effect you need to either have established a permanent presence in NZ, or have been in the country for 183 days to be a tax resident for the year. I don't think either of those are the case, though I'm not sure what INZ's legal definition of "permanent presence" is--I don't think that filling out the form with my partner's brother's mailing address as my correspondence address qualifies, but maybe it does.

    Has anyone gotten an IRD number, moved money into the country, and deferred starting the temporary tax exemption? It sounds like it would happen automatically, but I can't quite get a clear answer. I do realize that, obviously, I'll need to pay taxes to NZ on the interest income earned in an on-shore account.

  2. #2
    Join Date
    Jun 2015
    Location
    UK->CA->NZ
    Posts
    87

    Default

    I think you need to be a tax resident i.e. 183 days to be qualified to have temporary tax exemption for new immigrant. We opened NZ bank account while we were still overseas and no tax was withheld from our bank interest because we were not tax resident yet. After we permanently moved to NZ, we noticed the bank that we are now NZ tax resident and now tax is withheld from interest.

  3. #3
    Join Date
    Dec 2015
    Location
    NZ
    Posts
    50

    Default

    Please find more information from IRD themselves here..
    http://www.ird.govt.nz/international/residency/about/

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