We hope you find these six personal tax summaries helpful.
- New Zealand tax residence - Understanding how tax residence affects your tax obligations
- Investing in PIEs - Understanding how your Portfolio Investment Entities (PIEs) are taxed
- Foreign currency bank accounts - A guide for New Zealand tax residents
- Keeping information for tax returns - Managing information for your tax returns while overseas
- Provisional tax for individuals - Managing your tax instalment payments
- Offshore share investments - Understanding how the FIF regime might apply to your investments
New Zealand tax residence
Understanding how tax residence affects your tax obligations
If you are a New Zealand tax resident, you will generally be subject to tax in New Zealand on your worldwide income. Non-residents are subject to tax in New Zealand on income only if it has a New Zealand source.
Many people are not aware of the specific requirements for triggering or losing their New Zealand tax residence status.
New Zealand tax residence [PDF: 372KB]
Investing in PIEs
Understanding how your Portfolio Investment Entities (PIEs) are taxed
Many New Zealand managed funds are now registered with the Inland Revenue Department as PIEs or Portfolio Investment Entities. Usually the tax paid by PIEs is the final tax, and you do not need to include anything in a tax return for these investments. However there are a few things that you need to be aware of, and to communicate to your fund manager.
Investing in PIEs [PDF: 344KB]
Foreign currency bank accounts
A guide for New Zealand tax residents
Bank accounts or loans in a foreign currency are subject to the financial arrangement rules. This means any foreign exchange gains are, or will become, taxable. Many people do not realise they have an obligation to report these gains to Inland Revenue.
Foreign currency bank accounts [PDF: 503KB]
Keeping information for tax returns
Managing information for your tax returns while overseas
When you go overseas on assignment or hold offshore investments, you will be required to file a return with Inland Revenue. To do this, there’s certain financial information you’ll need to keep.
Keeping information for tax returns [PDF: 207KB]
Provisional tax for individuals
Managing your tax instalment payments
A provisional taxpayer is required to pay instalments of income tax (called provisional tax) during the income year, rather than at the end of the year when a tax return is filed. This obligation to pay provisional tax can arise in addition to the taxpayer’s employer deducting tax from salary payments.
If you are a provisional taxpayer, it is important that you make adequate provisional tax instalments during the year in order to minimise penalties and interest that may be imposed. However it can be difficult to know how much provisional tax to pay.
Provisional tax for individuals [PDF: 431KB]
Offshore share investments
Understanding how the FIF regime might apply to your investments
New Zealand residents with investments in overseas shares need to consider their tax position each year. The timing of transactions, particularly around 31 March each year, can also have a significant impact on your tax position.
Offshore share investments [PDF: 275KB]