New Zealand: Living There - Tax Issues
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Living There
INDIVIDUAL TAXATION
Tax residents are taxed on their worldwide income, while non-residents are taxed on New Zealand-sourced income. Both residents and non-residents are taxed at the same tax rates.
INCOME TAX RATES |
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| TAXABLE INCOME, NZ$ (US$) | MARGINAL TAX RATE | ||||
| Up to 38,000 (US$28,965) | 19.5% | ||||
| 38,000 - 60,000 (US$45,735) | 33% on band over US$28,965 | ||||
| Over 60,000 (US$45,735) | 39% on all income over US$45,735 | ||||
| * Exchange rate as of 16 October 2007: 1 USD = 1.31192 NZD (New Zealand Dollars) Source: Global Property Guide |
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Tax Credits
New Zealand offers a lot of tax rebates and tax credits that can be deducted from the gross income.
Low Income Rebate
Only resident individuals can avail of the low income rebate. The maximum tax rebate is NZD427.50 (US$326). If net income is less than NZD9,500 (US$7,241), the rebate is:
- 4.5% of the net income if the taxpayer is a New Zealand superannuitant or receives a veteran’s pension, or
- 4.5% of net income excluding interests, dividends, rents, royalties, and beneficiary income and taxable distributions from a trust, in the case of other taxpayers.
If the net income exceeds NZD9,500 (US$7,241), the maximum rebate is reduced at the rate of 1.5% of the amount that exceeds NZD9,500 (US$7,241). No tax rebate is available if the net income reaches NZD38,000 (US$28,965).
Charitable Donations Rebate
The rebate is the lesser of 33.33% of total qualifying donations or NZD630 (US$480). Qualifying gifts are gifts of NZD5 (US$3.81) or more made to organizations or institutions listed by the CIR.
Family Support Tax Credits
The following amounts are the tax credits for the income tax year 2007-2008:
- The eldest child
- NZD4,264 (US$3,250) if the child is younger than 16 years
- NZD4,940 (US$3,766) if the child is 16 years or older
- Other children
- NZD2,964 (US$2,259) if the child is less than 13 years
- NZD3,380 (US$2,576) if the child is 13 to 15 years
- NZD4,420 (US$3,369) if the child is 16 years or older
Parental Tax Credit
A parental credit of NZD1,200 (US$915) is allowed for each child born on or after 01 October 1999. This credit is available to a person aged 16 or over who is the principal caregiver to one or more dependent children.
New Zealand - more data and information
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