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I_Am_The_Kiwi
Joined: 10 Jun 2008
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 Posted: Sat Sep 13, 2008 5:24 pm Post subject: Do I have to pay tax in New Zealand too ?!?! |
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So, im trying to figure out if my income here in Korea is taxable by NZ govt.
Does anyone know, will i get double taxed by the IRD when i roll back into NZ with all my cash in the bank?
All ive found on the subject it this
http://taxpolicy.ird.govt.nz/international/DTA/agreements/korea.html
which is a confusing jumble of words that Governments like to string together to make themselves look good...but wtf does it mean.
Thanks for any help!! |
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TheChickenLover
Joined: 17 Dec 2007
Location: The Chicken Coop
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| Posted: Sat Sep 13, 2008 7:55 pm Post subject: |
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Yes.
You have to pay taxes on your world income even if you're not living in New Zealand.
What that article says is that they will deduct your Korean taxes off your NZ ones so you don't pay too much.
Chicken |
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Horangi Munshin
Joined: 06 Apr 2003
Location: Busan
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| Posted: Sun Sep 14, 2008 3:15 am Post subject: |
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| I don't pay NZ tax. I am a non-resident for tax purposes. I had to visit the IRD before leaving NZ. You have to be out of the country for over 325 days too I think. |
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sojukettle
Joined: 23 Aug 2005
Location: Not there, HERE!
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| Posted: Sun Sep 14, 2008 3:28 am Post subject: |
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No, you don't pay NZ tax on anything not earned in NZ.
I pay tax on the interest earned on my NZ bank account ( 19.5% tax- as a non-resident ) and if my property was earning rental income, that would also be taxed.
Any other off shore income is only taxed once, at the source.
But, as I have only lived in NZ for 6mths of the last 27yrs maybe there is some other ruling......
But, that is only tax I pay and IRD seem ok with that ( I now have to get my kids Tax file Numbers as their savings accounts are now attracting tax also - a hassle, but they will be exempt from tax after getting the TFN's)
* your link is for " the avoidance of double taxation" which I think agrees. If you have paid tax here ( or not - but don't tell) then you have no obligation to be taxed in NZ
sk |
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I_Am_The_Kiwi
Joined: 10 Jun 2008
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| Posted: Sun Sep 14, 2008 5:35 pm Post subject: |
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Awesome, thanks for the info.
Dont wanna get stung by the IRD when i get home. |
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Cheonmunka
Joined: 04 Jun 2004
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| Posted: Sun Sep 14, 2008 6:19 pm Post subject: |
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| Write a letter to IRD soon before you go back letting them know you are not a resident for the year. |
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I_Am_The_Kiwi
Joined: 10 Jun 2008
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| Posted: Sun Sep 14, 2008 7:32 pm Post subject: |
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If i just ignore IRD will i be ok?
If they want proof of me not being in the country they can see my VISA stamps from my passport etc to show being away from NZ for over a year. I cant be arsed dealing with them, it always seems like the next person you talk to there tells you something different |
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OneWayTraffic
Joined: 14 Mar 2005
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| Posted: Sun Sep 14, 2008 10:58 pm Post subject: |
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| I_Am_The_Kiwi wrote: |
If i just ignore IRD will i be ok?
If they want proof of me not being in the country they can see my VISA stamps from my passport etc to show being away from NZ for over a year. I cant be arsed dealing with them, it always seems like the next person you talk to there tells you something different |
Never ignore IRD. Those guys can literally destroy your life should you ever go back. Same goes to any national tax department.
Here's what you do. Give them a ring and let them know that you're out of the country and will be for some time. They will register you as a non resident, which disqualifies you from paying any tax on non NZ earned income.
On the other hand you don't get Student loan interest write offs and such either. You need to make regular payments into it to avoid penalty interest rates. It's kind of like forced savings. The bright side of that is you pay it off much faster- I disappeared 50k in 4 years flat.
It's pretty painless to let them know. I was done in ten minutes over the phone and never had any headaches or worries about it. Better than trying to deal with a hostile tax department several years down the road.
Americans and Canadians really get screwed. Canadians especially are expected to pay tax, whether they are getting the benefits or not. That would tempt me to avoid the tax-which in my mind they have no right to collect. |
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Khyron
Joined: 27 Jan 2005
Location: Japan
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| Posted: Mon Sep 15, 2008 12:26 am Post subject: |
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| OneWayTraffic wrote: |
| ...Canadians really get screwed. Canadians especially are expected to pay tax, whether they are getting the benefits or not. That would tempt me to avoid the tax-which in my mind they have no right to collect. |
WTF? Please make sure you actually know what you're talking before giving out information which you have no clue about again.
If you're a Canadian, just submit a declaration of non-residency forum. Non-residents of Canada do not have to pay Canadian tax if you are a resident of another country and Canada has a tax treaty with them. Canada does have a tax treaty with Korea. I have no idea about NZ, so I won't try to speculate.
Here is the official word from the Canadian government: http://www.cra-arc.gc.ca/E/pub/tg/t4131/t4131-e.html. |
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blackjack
Joined: 04 Jan 2006
Location: anyang
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| Posted: Mon Sep 15, 2008 12:58 am Post subject: Re: Do I have to pay tax in New Zealand too ?!?! |
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| I_Am_The_Kiwi wrote: |
So, im trying to figure out if my income here in Korea is taxable by NZ govt.
Does anyone know, will i get double taxed by the IRD when i roll back into NZ with all my cash in the bank?
All ive found on the subject it this
http://taxpolicy.ird.govt.nz/international/DTA/agreements/korea.html
which is a confusing jumble of words that Governments like to string together to make themselves look good...but wtf does it mean.
Thanks for any help!! |
You don't pay tax in new zealand if you are not a resident of new zealand.
to be a non resident you have to spend at least ~325 daysin a 12 month period outside the country. You can't have a strong tie to NZ, eg wife, house, major investments etc.
Simply email ird and ask it's your best and safest bet.
http://www.ird.govt.nz/income-tax-individual/filing-your-return/overseas/ |
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