Rates of taxes in New Zealand as
of April 1, 2009, not including ACC levy of earner
levy are 12.5 cents for each NZ dollar for income up
to NZ$14,000, 21 cents for each NZ dollar for income
from NZ$14,001 to NZ$48,000, 33 cents for each NZ
dollar for income from NZ$48,001 to NZ$70,000, and
38 cents for each NZ dollar for income of NZ$70,001
New Zealand’s standard tax year runs from April 1 to
Depending upon your tax residency category, diverse
taxes may be employed. As a visitor you will are
required to pay GST on anything you buy. If you
receive a salary or wages, income tax is enforced.
For performing artists, entertainers, sports people, and
contractors visiting New Zealand, they are required to pay
For purposes of tax, you must establish if you are a
resident or non-resident. You are a resident of New Zealand
if you are out of the country within a twelve-month period
of no more than 325 days. You are a non-resident if you go
over this period and you have no ties with New Zealand. You
can refer to the NZ Inland Revenue Department tax residence
guide or IR292 for more details.
You are required to get an IRD number before you can work or
start a bank account in New Zealand. You cannot receive
income without an IRD number.
The rule on foreign income tax since April 1, 2006 has given
those arriving to reside in New Zealand a temporary reprieve
from paying taxes on a majority of foreign income types.
The country’s savings initiative
based on work is the KiwiSaver. The KiwiSaver was
started in July 1, 2007 and a majority of residents
of New Zealand and those who have a right to live in
New Zealand within the age range of 18 years old and
above are, by default, enrolled in the KiwiSaver
upon starting a new job.
The KiwiSaver is a retirement savings plan which is
voluntary. A member can decide to forsake membership
at any time from 2 to 8 weeks after commencing
employment. The lowest contribution for a member in
KiwiSaver is 2 percent of the gross pay of the
worker, though many members contribute twice that
amount. Working for Families tax credits, previously
called family assistance, is economic aid for
families who have children who dependent on them
financially aged 18 years and below.
The amount you may receive from Working for Families tax
credits depends on the number of children aged 18 years and
below who depend on you, you and your partner’s salary or
wage, and the source of your income whether it is through
employment or welfare.
The 4 types of Working for Families tax credits are Family
Tax Credit which is given to low to middle-income families
for every child aged 18 years or below, In-work Tax Credit
which is given to families who work the least number of
hours per week, Minimum Family Tax Credit which aims to
bring the income of a family to $355 a week minus tax (in
order to avail of this aid, at least one parent in the
family is employed and being paid wages or salary), and
Parental Tax Credit which is given for the first fifty-six
days of a child’s life.