Overview

Everytime that you start a new job, each new employer you work for will give you a Tax Code Declaration Form (IR330) to complete. The tax code will tell your employer the correct amount of tax to deduct from your wages.

In New Zealand, tax is deducted on a pay as you earn (PAYE) basis and includes Accident Compensation Corporation (ACC) earners' levy. This means that if you have an accident and injure yourself while you're in New Zealand, you will get medical and hospital treatment without having to pay all the costs. The amount of income tax you pay depends on how much you earn in one year.  Before you start your job and need to pay your PAYE, you will need to obtain an Inland Revenue Department number (IRD Number).

Individual Tax:

• Income up to $38,000 per annum income tax deducted at the rate of 19.5%;
• Income over $38,000 to $60,000 per annum deducted at the rate of 33%;
• Income over $60,000 per annum deducted at the rate of 39%.

The New Zealand tax year runs from 1st of April to 31st March.

Company Tax:

The basic rate for New Zealand resident companies is 33% of taxable income. This also applies for non-resident companies.

Goods and Services Tax (GST):

Individuals also pay an indirect tax known as Goods and Services Tax (GST) on almost all goods and services purchased. The current GST rate is 12.5% (Sept ’08). GST is not charged on items that are exported from New Zealand.

If you are coming to New Zealand with the intention of staying and working for a short time or you are a Working Holiday Maker, you will have to pay tax.

The rules are:
• If you are staying in New Zealand for up to 183 days or fewer in any 12-month period, you will not need to become a tax resident:
• If you are in the country for more than 183 days in a 12 month period, you will become a New Zealand tax resident.