2.1 How to check if you are a New Zealand tax resident
You become a New Zealand tax resident when the first of these things happens;
- you’ve been in New Zealand for more than 183 days in any 12-month period (there is no need for the 183 days to be continuous). You will be a tax resident from day 1 of the 183 days.
- you have a permanent place of abode in New Zealand, such as a house or apartment where you normally live, or your close ties are with New Zealand
Here are some of the things to consider in respect of how close your ties are with New Zealand.
Ø how often you return to New Zealand
Ø how long you spend here
Ø your family and social connections
Ø your economic interests, for example, investments or superannuation funds in New Zealand
Ø your employment or business connections
Ø whether you intend to return to live in New Zealand.
You'll need to consider your overall situation when working out your tax residency status as the tax treatment would be different. For more guidance, please refer to https://www.ird.govt.nz/international-tax/individuals/tax-residency-status-for-individuals
2.1.1 How is tax treated if you are a non-NZ resident
You will become a non-resident taxpayer if:
- you are away from New Zealand for more than 325 days in any 12-month period, and
- you do not have a permanent place of abode in New Zealand
As a non-resident taxpayer, you’ll generally pay tax in NZ only on income you earn from New Zealand sources. For example, any rental income you earn in New Zealand, a gain made from selling a property in New Zealand if you had the intention to sell it when you bought it.
You’ll need to file a Non-resident individual tax return (IR3NR) by the due date (See 2.3).
However, you do not need to file a tax return if your only income is either:
- exempt
- from interest, dividends and royalties and tax has been deducted correctly.
Disclaimer: The content of this page is for educational purposes only. It is designed to help you understand the potential tax obligations that may apply to you when investing in financial products. Tiger Broker does not provide any advice, including tax advice, and is not responsible for providing any guidance, opinions, or suggestions about tax for you. If you have any questions about your personal circumstances and tax obligation, we suggest you contact your tax advisor directly for more information.