Tax Residency

New Zealand tax system requires NZ “tax residents” to pay tax on their worldwide income. This includes all overseas interest; dividends; rental income; investments; cash jobs; salaries; bonus – just to name a few.

Whilst you are entitled to claim overseas tax credit to help offset the NZ tax liability, there can still be a substantial amount outstanding. This can be a nasty surprise for the unweary at year end!

Determining tax residency is not a straight forward task. This can be a particularly challenging concept for new migrants or even returning expatriates to understand.

On the other hand, if you are thinking of leaving NZ, you need to have your NZ tax affairs reviewed & sorted prior to your departure. You may be able to change to a non tax resident. –therefore exempting you from paying tax on overseas income in NZ.

Withers Tsang has many years of experience in assisting clients in the tax residency area. You are best to arrange a tax planning consultation if:

• You are planning to go overseas
• You are an expatriate thinking of returning to New Zealand
• You are migrating to New Zealand

Our services include:

• Pre-migration tax planning consultation for first time migrants to New Zealand 
• Tax planning advice for returning expatriates
• Evaluate and restructure your tax affairs prior to leaving New Zealand
• Assist you to determine and obtain non tax residency status
• Liaise and negotiate with IRD on your behalf

If you want to find out more regarding our tax residency services, please contact Stephen Tsang at stephen@wt.co.nz or 09 376 8860.