Questioning IRD Taxes In New Zealand

IRD Taxes In New Zealand

 

Even with FAQs and Tax Information pages, sometimes, that is not enough to understand IRD taxes in New Zealand. Here, we’ve answered some questions in as simple as possible for anyone to grasps. If you have more questions, drop us a mail and we will possibly answer and feature it in our next blog post.

How Do I Apply For An IRD Number In New Zealand?

Let's look at the following scenarios and depending on your current situation, pick the one that fits you and go on from there.

 

Scenario 1:

If you are a New Zealand citizen and passport holder, you can apply for an IRD number for yourself, or a child in your care by using the IRD number application (IR595) form.

Alternatively, you can also use the Department of Internal Affairs' SmartStart service (smartstart.services.govt.nz) to register the birth of your child and apply for an IRD number at the same time. Just select the "Register Birth Online" service.

 

Scenario 2:

Australian Passport

If you're an Australian passport holder, you can go to the IRD website and apply for an IRD number only for yourself. You just need your passport details.

 

Scenario 3:

If you hold a resident visa, you can apply for yourself and/or on behalf of another person. You'll need your passport details and Immigration New Zealand Application Number which is available from your visa letter.

 

Scenario 4:

If you hold a student visa, you can apply for yourself, or a guardian can apply for you. You'll need - your passport details, your most recent overseas tax number (if you have one), your Immigration New Zealand Application Number (from your visa letter), and proof of a bank statement from your NZ bank account.

 

Scenario 5:

If you hold a work visa - you can only apply for yourself. Similar to holding a student visa, here too you'll need - your passport details, your most recent overseas tax number (if you have one), your Immigration New Zealand Application Number (from your visa letter), and proof of a bank statement from your NZ bank account.

 

Scenario 6:

If you're presently NOT in New Zealand, you can only register online if you've been verified by New Zealand Customs Service. If you don't have Customs verification you'll need to complete the IR742 application form. Depending on your situation, the form will let you know what documents you need and what to do next, but as in most cases you will most definitely need to have a fully functional NZ bank account and proof of identification.

 

How Much Are The Tax Fees In New Zealand?

Short answer, it depends on your income. There are different slabs for each earning. you can use only one main tax code at any time. For tax on main (primary) income, the tax brackets are as follows:

 

Annual Income

Tax Rate

$14,000 and below

10.5%

$14,001 - $48,000

17.5%

$48,001 - $70,000

30%

$70,000 and above

33%

 

Now, What About Taxes On My Secondary Income? Do I Have To Pay More Taxes?

Some people tend to have secondary income, and if that is you, then you must firstly complete a separate tax code declaration (IR330) for each other type of secondary employment.

Check your secondary tax codes and rates in the table below.

 

Annual Income From All Sources

Secondary Tax Code WITHOUT Student Loan

Secondary Tax Code WITH Student Loan

Tax Rate

$14,000 and below

SB

SB SL

10.5%

$14,001 - $48,000

S

S SL

17.5%

$48,001 - $70,000

SH

SH SL

30%

$70,000 and above

ST

ST SL

33%

 

Inheritance Tax NZ

What About Income Tax On Inheritance?

One of the key features of New Zealand’s tax system is, in most cases, NO tax on inheritance. However, a deceased person may still owe the IRD tax! This needs to be filed from the 1st of April in the tax year that the person died until the date of his/her death.

Outside New Zealand, only 14 OECD countries have no taxes on inheritance.

These are only some of the more common questions we have received so far. If you want to know more, check out our Tax Information and FAQs, else, Apply Now and you can drop us a mail anytime.


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