Global

Details

  • 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?




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