Tax is an unavoidable fact of life and fortunately, New Zealand has a tax system that’s comparatively easy to navigate.
Will you need to pay tax in New Zealand?
Yes. Income tax and Goods and Services Tax (GST) fund the services that benefit all New Zealanders.
Not everyone in New Zealand needs to put in a personal tax return, and it is up to you to find out if you need to. If you have overseas income, or arrived part way through a tax year, then you will be required to file a return. The tax year runs from 1 April to 31 March. So, in practice, most new arrivals need to file a return in their first year here.
How will I pay tax?
NZDr will be placing you in to a District Health Board whereby you will be earning income that will have tax deducted through the PAYE (Pay As You Earn) system. An IRD (Inland Revenue Department) number is required for this to prevent tax being deducted at the highest rate. NZDr will advise you how to apply for the IRD number as soon as you arrive here. That way, you’ll be taxed at the right rate, right from when you start work.
Tax rates for the 2021-2022 tax year
A summary of the Key features of New Zealand’s tax system include:
- no inheritance tax
- no general capital gains tax, although it can apply to some specific investments.
- no local or state taxes apart from property rates levied by local councils and authorities
- no payroll tax
- no social security tax
- no health care tax, apart from a very low levy for New Zealand’s accident compensation injury insurance scheme
The above is a summary of the basics and subject to change.
For more detailed information, please contact us and we will put you in touch with our preferred partner who can answer your specific queries around Tax, Pensions, GST and Insurances.