It's important to know if you are tax resident in New Zealand - this is not the same as your immigration status!
- If you are a tax resident, you have to include ALL your worldwide income in your New Zealand tax return.
- If you are a non-resident for tax, then you only need to return income received from NZ.
You become a tax resident on the first of these events:
- You stay for longer than 183 days
- You have a permanent place of abode (the place you call home, it does not have to be owned by you).
To have a permanent place of abode, you may need to consider what your ties are to New Zealand.
Some of the things to consider are:
- how often you return to New Zealand
- how long you spend here
- your family and social connections
- your economic interests, for example, investments or superannuation funds in New Zealand
- your employment or business connections
- whether you intend to return to live in New Zealand.
You can only be a tax resident in one country at any one time and if this is unclear there are rules/tests that can be used to determine residency.
Double Taxation Agreements exist to allow relief for tax paid already paid on income in other countries.
It is not a clear cut test so please take advice if you are not sure. Contact firstname.lastname@example.org. We are here to help.