• Service: Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/26/2014

New Zealand - New rules for determining tax residence 

March 26:  Last week, the Inland Revenue Department released long-awaited guidance—an “interpretation statement”—on tax residence, thus updating previously published guidance from June 1989.

The new guidance:

  • Is effective 1 April 2014
  • Covers the residence tests for individuals, companies and trusts
  • Will affect New Zealand expatriates and their families and potentially their New Zealand employers

In general, the key tests for determining New Zealand residence of individuals are the “permanent place of abode” and the “permanent home” (i.e., the place where a person is a resident in an income tax treaty country).

KPMG observation

Determining an individual’s tax residence is not straightforward; it involves considering the totality of a person’s circumstances and the level of enduring relationships with New Zealand.

Read a March 2014 report prepared by the KPMG member firm in New Zealand: Tax residence statement – pragmatic but little comfort?

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now