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Thread: work from home for a foreign company from NZ :: Is there a tax ?

  1. #1
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    Default work from home for a foreign company from NZ :: Is there a tax ?

    Hi just wanted to know if you have any idea about this.

    I have an option to work for a foreign company from NZ. This company has no offices in NZ, and I will have to work from home ( telecommute) from my home in NZ.
    Do I need to pay taxes to NZ govt?

    The foreign company will credit the salary into my NZ bank account.

  2. #2
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    It is very likely that you will have to pay tax on your earnings from this work, unless tax is paid on the money in the foreign country, and NZ has a double-taxation agreement with that particular foreign country. You need to check out the details. https://www.ird.govt.nz/internationa...payingtax.html

  3. #3
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    Thanks JandM.
    Yes I checked it and there is a double taxation agreement between my home country and NZ. Tax in home country is cheaper.

    Also, I was wondering if I have to go through the hassles of NZ tax if I receive the money in the bank account i the home country rather than receiving it in NZ bank account? Are there any tax liability if I get paid to a bank in home country?

  4. #4
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    It may be (is likely?) the case that taxes paid in your home country, but then earned while you are tax resident in New Zealand, will still be due to NZ. A double taxation agreement might prevent you from being taxed on the same income twice, but shouldn't be a loophole to avoid paying New Zealand tax, and you'd likely have to pay the difference in unpaid tax to NZ.

    I think speaking to a licenced tax advisor is the right course of action.

  5. #5
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    Quote Originally Posted by farfaraway View Post
    Are there any tax liability if I get paid to a bank in home country?
    Yes.

    As it says in the link JandM posted:
    "If you're a resident of New Zealand for tax purposes you'll pay tax in New Zealand on all your worldwide income. This is income you get from New Zealand as well as from all other countries.
    Your worldwide income includes any income from another country, even if you don't bring the money into New Zealand. "

  6. #6
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    hi Thanks for the reply.

    Trying to contact some accountants, seems it will take time to meet someone.

    I am trying to understand this thingy "pay the difference in unpaid tax to NZ".

    Lets say for example, home country tax is 10% and NZ tax is 30%.

    10% tax I pay to home country. and the difference 20% I will pay to NZ. Am I correct?

  7. #7
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    Quote Originally Posted by farfaraway View Post
    hi Thanks for the reply.

    Trying to contact some accountants, seems it will take time to meet someone.

    I am trying to understand this thingy "pay the difference in unpaid tax to NZ".

    Lets say for example, home country tax is 10% and NZ tax is 30%.

    10% tax I pay to home country. and the difference 20% I will pay to NZ. Am I correct?
    How much tax you will pay, if at all will largely depend on your home country's double tax agreement with NZ and as with any other area of the taxation law, is fairly complex. (see https://www.ird.govt.nz/internationa...nts-index.html)
    These agreements try to address even fundamental areas as tax residency, type of tax entity and proportionality etc and can vary from country to country(for example the one we have with Australia is more comprehensive given our close ties). But generally if your country has an angreement then it is a good start and should try wasting your time on finding a suitable tax professional than trying to understand them.
    Last edited by everest; 12th October 2018 at 04:09 PM.

  8. #8
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    Thanks for your reply.
    Yes my home country has a DTA - tax agreement.
    Do you mean that I don't need to hire an accountant?
    And try to read and understand the process?

  9. #9
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    Was confused with this part ". But generally if your country has an angreement then it is a good start and should try wasting your time on finding a suitable tax professional than trying to understand them."

  10. #10
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    Quote Originally Posted by farfaraway View Post
    Was confused with this part ". But generally if your country has an angreement then it is a good start and should try wasting your time on finding a suitable tax professional than trying to understand them."
    I meant you should see an Accountant

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