Income tax in New Zealand

 

New Zealand is a country where the tax burden is one of the lowest in the world. However, everybody have to pay income tax. Income tax is collected at source on salaries according to the PAYE system (Pay As You Earn). The fiscal year begins April 1^st and ends on March 1^st of the following year.

Once you have found a job in New Zealand, you must fill in your "Tax code declaration” (Form IR330) before sending it to your employer so that he/she can apply the right tax code corresponding to your situation. Your tax rate is based on your tax code. However, if your situation changes, or if you think your tax code is wrong, you will have to submit another Tax Code declaration to your employer.

If you do not submit your tax code declaration to your employer, you will be taxed at the maximum rate of 45% of your income.

At the end of the fiscal year, you will have to send a Personal Tax Summary to the Inland Revenue Department if you feel you have not paid the right amount of taxes.

Income tax rates are as follow: 

Income	Tax rate
0 to $ NZ14,000	12.5%
14,001 to $ NZ 40,000	21%
40,001 to $ NZ 70,000	33%
$ NZ 70,000 and above	39%
No tax code declaration (IR330)	45%

 Useful link:

IRD - Inland Revenue Department - downloadable forms and general information

http://www.ird.govt.nz/income-tax-individual/ 

 Good to know: 

VAT (GST) is at a rate of 12.5% on most goods and services. 

 

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