Becoming a New Zealand Tax Resident

If you are in the process of moving to New Zealand, but you are moving back and forth for a while as you sort things out, you will need to investigate when you become liable to pay tax in New Zealand – when, in other words, you become a New Zealand tax resident.

Two separate tests apply:

• 183 Day Test:
  Any person present in New Zealand for more than 183 days in any 365 day period is deemed to be a tax resident for taxation purposes
  
• Permanent Place of Abode Test
  "Permanent place of abode” is not defined in the Income Tax Act, but the courts have ruled it encompasses the durability of a persons association with New Zealand and includes such factors as:
  • The physical presence of the person
  • The presence of the person’s immediate family
  • The availability and use of a dwelling and accommodation patterns
  • Employment and business interests
  • Family and social ties in New Zealand

These tests are completely separate tests from the tests for immigration or residence. For more information, consult a finance specialist offering financial advice and services for migrants to New Zealand.

This article was supplied by Broadbase International Ltd (www.broadbaseinternational.com). Information contained in this article is of a general nature and is not intended as a substitute for professional advice based on your individual circumstances. Disclosure statements are available on request and free of charge.