 New Zealand operates a comprehensive taxation regime under which New Zealand Tax Residents are subject to income tax on their worldwide income - in the simplest terms, any money you earn is taxed. New Zealand has a Double Tax Agreement with the UK, so you will not be taxed twice on any UK income.
New Zealand operates a self-assessment system where taxpayers are responsible for completing and filing their own tax returns if required. Employees have tax deducted from their earnings as they are paid by their employers. The tax is paid to the Government under a system known as "pay as you earn" (PAYE). Taxpayers who derive their income from sources such as businesses, rental or investments pay tax in three instalments during the year with a fourth annual square-up payment. This is referred to as the provisional tax regime. If you are earning a wage in NZ, you'll find that approximately the same amount of your income disappears automatically to the tax man as in the UK. The main difference is that there is no personal allowance; but on the up-side, there are no stamp duties, estate duties, or National Insurance contributions. There is also no comprehensive Capital Gains Tax regime. However, in certain situations income tax (based on the tax rates of the entity in question) can apply to certain types of capital gains generated. There is also a tax payable on some offshore investments which has a capital gains element. This is capped at 5% of the value of the investment. As in the UK, the tax year runs from April 1st to March 31st. The income levels at which income tax is assessed are: Individuals: -
up to NZ$38,000 the rate is 19.5% -
between NZ$38,001 and $NZ60,000 the rate is 33% -
over NZ$60,000 the rate is 39%
Companies: Complying Trusts: -
income retained by the Trust is subject to the flat rate of 30% -
income distributed to beneficiaries (with 6 months of balance date) is taxed at the rates for the individual beneficiaries (as listed above)
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