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Thread: Tax question

  1. #1
    Join Date
    Jul 2006
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    Dairy Flat, Auckland
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    Default Tax question

    We are coming over in Feb and thought we had all the tax situation sorted out. According to the NZ govt website from April 2006 there is a tax exemption on most monies brought into the country for all new immigrants. This lasts for 4 years. http://www.ird.govt.nz/yoursituation...reign-inc.html

    However we have now been put in touch with an accountant in NZ who informs us that this is not the case. He reckons that anything we bring in over $27,000 we will have to pay 25% tax.
    I am certain he is wrong if you go by what the nz revenue site says.
    He says the only way around this is to put the money into trust which he can arrange. I smell a rat here and reckon he is trying to make a fast buck.
    We have emailed inland rev nz but are still awaiting a reply.

    Has anyone else experienced this. If it is true then the revenue website is very misleading


    Caroline and Dave

  2. #2
    Join Date
    Mar 2006
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    Wellington (from Beds, UK)
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    Default

    Quote Originally Posted by Caroline and Dave
    According to the NZ govt website from April 2006 there is a tax exemption on most monies brought into the country for all new immigrants. This lasts for 4 years. http://www.ird.govt.nz/yoursituation...reign-inc.html
    Not quite. The exemption is tax on income earned overseas in the first 4 years - nothing to do with money brought into the country.

    Quote Originally Posted by Caroline and Dave
    However we have now been put in touch with an accountant in NZ who informs us that this is not the case. He reckons that anything we bring in over $27,000 we will have to pay 25% tax.
    I've never heard of this? As far as I'm aware moving money into the country does not incur tax. So I'd be very interested to hear if he could point you in the direction of some official info on that?

    You'll will have to pay income tax on interest earned on it when the money is in NZ though.

  3. #3
    Join Date
    Sep 2006
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    Just beware. Lots of new migrants get fleeced when they first come over. Take the rose coloured specs of and smell the coffee. If it seems a con, looks like a con - its a con.

  4. #4
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    Sep 2005
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    Hawke's Bay - Cardiff...ish!
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    Default

    I'm sure if you had to pay a whopping 25% tax on any money you bring into the country there would be a hell of a lot less people going and I am sure something would have come up about it before on the forum. I have never seen anything like it on here! Sounds like a con to me.... if it's not then we are stuffed!!!

  5. #5
    Join Date
    Aug 2006
    Location
    Auckland
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    Hi,

    Interesting question. On the one hand a real accountant should be trustworthy. On the other, the I can help you and no one else can factor sounds odd. More posts needed from those in the know....

    Fingers

  6. #6
    Join Date
    Aug 2004
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    christchurch (formerly essex)
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    I think I would be looking for another accountant. we paid no tax on the money we brought over and neither did our daughter and her husband.

  7. #7
    Join Date
    Nov 2004
    Location
    Stonefields, Auckland
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    Default

    Isn't this a question of bringing "Income" vs "savings" in the country? We have all brought in funds from house sales in the Uk and I have never heard of anyone having to pay tax - but "income" will attract tax (except for the new rules)

    Ignore what you were told - its rubbish!

    Neil

  8. #8
    Join Date
    Sep 2006
    Location
    Wellington
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    Hi Folks,
    we came over in 2002 and brought our funds from our house sale and paid no tax on it, we did have to pay tax on our interest while it was in the bank. I would seek some official opinion as it seems strange to me.

    its unfortunate to say but some newcomers do get fleeced sometimes, as your not too sure of all the rules you can be an easy target.

    Just ask, and i'm sure you'll find somone with the answers

    Brian and Jan

  9. #9
    Join Date
    Aug 2004
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    Inland Canterbury, NZ
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    I don't know anyone who has paid tax on money bought into NZ - and most of us have bought much more than $27k. What we did pay, however, was tax on the interest and this was deducted directly from the bank account by the bank and itemised "withholding tax".

    Go and find another accountant....

  10. #10
    Join Date
    Aug 2004
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    349

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    Quote Originally Posted by Caroline and Dave
    He reckons that anything we bring in over $27,000 we will have to pay 25% tax.
    What your accountant says is completely incorrect.

    As Moorf wrote, you can bring as much money as you like to NZ tax free. You only pay tax if you generate income from it, such as interest from a bank account, after it's here.

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