Tax System

Defining Your Tax Status

If you stay in New Zealand for more than 183 days (six months) in any 12-month period and have what the Inland Revenue Department (IRD) considers an "enduring relationship" with New Zealand, you are a "resident", for tax purposes. This makes you liable for tax on cash jobs and self-employed income. Employers will deduct PAYE (pay as you earn) tax from any wages or salary you earn. You may be eligible for rebates.

Getting an IRD Number

When you start employment, the employer will ask for your IRD number. This is an individual number, which you should apply for at the Inland Revenue Department. You can phone them from anywhere in New Zealand on 0800 227 774, between 8am and 8pm Monday to Friday, and 9am to 1pm on Saturdays.

Resident Withholding Tax (RWT)

If you have money in a New Zealand bank, the bank will deduct RWT from any interest you earn, on behalf of the government. If you do not provide an IRD number, this will be deducted at the "non-declaration rate", which is rather high, so it is beneficial to have your own IRD number even if you are not working.

Less than Six Months Stay

If you stay for less than 6 months, you are a "non-resident" for tax purposes but still have to pay for tax on income earned in New Zealand. However, you may be entitled to an exemption. The Non-Resident Centre, Inland Revenue Department, P.O. Box Bag 1932, Dunedin, ph: 03 467 7020 (between 9am and 4.30pm - Monday to Friday) fax: 03 467 7083, will help you.

The Financial Year

The financial year is from 1 April to 31 March. Tax is payable by 7 February, or 7 March if an accountant/tax agent helps with your tax return.