| New Zealand Income Tax Rates for 2009-2010 New Zealand individual income tax rates for the year ending 31 March 2010 are:
NZ$ 0 - $14,000: 12.5%
NZ$ 14,001 - $40,000: 21%
NZ$ 40,001 - $70,000: 33%
NZ$ 70,001 and higher: 38%
Tax Year: 1 April to 31 March the next year.
Income tax is payable by New Zealand residents on their worldwide income. Non-resident individuals pay tax on New Zealand-sourced income only.
An individual is resident in New Zealand if personally present for more than 183 days in any 12-month period or if the individual has a 'permanent place of abode' in New Zealand.
Individuals arriving to live in New Zealand on or after 1 April 2006 may qualify for a temporary tax exemption on foreign income. All foreign sourced income will be exempt, except for employment income connected with employment performed while in New Zealand and income from services. Tax exemption applies to the first 48 months (four years) following arrival in New Zealand. To qualify, an individual cannot have been tax resident in New Zealand during the previous ten years.
Income tax is payable on gross income less allowable deductions. Gross income includes employment income, business income, rents, interest and dividends.
Certain donations, rebates, low income rebate, family support tax credits and child care credits are available.
Employment income (salary / wages) has tax payments deducted from each salary/wage payment.
Self-employed individuals and those receiving income with no tax deducted at source pay provisional tax in three instalments based on their previous year's taxable income, with a final payment within 11 months after balance date (or 13 months after balance date where the taxpayer is enrolled with a tax practitioner).
PAYE System: If you earn income from salary, wages or a social security benefit in New Zealand, your tax will be deducted under the pay-as-you-earn (PAYE) system. This means that the pay you get from your employer has already had tax deducted.
Capital Acquisitions Tax: A gift duty is levied on the donor on gifted assets worth more than NZD 27,000 and a gift statement must be filed once the value of gifted assets in any 12-month period reaches NZD 12,000.
Real Property Tax: There's no Real Property Tax for individuals in New Zealand.
Inheritance / Estate Tax: There's no Inheritance / Estate Tax for individuals in New Zealand.
Net Wealth / Net Worth Tax: There's no Net Wealth / Net Worth Tax for individuals in New Zealand.
New Zealand Corporate Tax RateTax rate for companies in New Zealand for 2009-2010 is 30%.
Tax Year: 1 April to 31 March the next year.
Income tax is payable by New Zealand resident companies on non-exempt income derived from all sources. Non-resident companies are required to pay tax on income sourced in New Zealand.
Resident companies are companies that are incorporated in New Zealand, or have their head office or centre of management in New Zealand, or control of the company is exercised by the directors in New Zealand.
The tax year usually runs from 1 April to 31 March, although different balance dates are available in certain circumstances. Tax is payable in three instalments (referred to as 'provisional tax') if a company's residual income tax (total tax less available credits) exceeds $2,500 per annum.
Provisional tax is payable in three instalments on 28 August, 15 January and 7 May for 31 March balance dates. For taxpayers with a non-standard balance date, provisional tax is generally payable on the 28th day of the fifth, ninth and 13th months of the income year following the month of balance date. Exceptions to this arise for those on July balance dates due to public holidays and where the taxpayer has commenced business during the income year. Income tax returns must be filed with the Inland Revenue Department within four months of balance date or by 31 March of the following year where the company is enrolled with a tax practitioner that has an extension of time arrangement.
Capital gains tax: There is no comprehensive capital gains tax in New Zealand. However, where a capital asset was bought for the clear purpose of resale, any profits or gains will be regarded as ordinary income.
Branch profits tax: There is no branch profits tax in New Zealand. New Zealand branches of foreign companies are taxed on New Zealand sourced income only at the corporate tax rate.
Fringe benefits tax (FBT): Fringe benefits tax is payable by employers on benefits provided to employees. The rate is up to 64% of the taxable value of the benefit provided.
The FBT year runs from 1 April to 31 March. FBT is payable and returns must generally be filed by the 20th day of the month following the quarters ending 30 June, 30 September, 31 December and 31 March.
KiwiSaver: KiwiSaver is a workplace savings scheme designed to help New Zealanders save for their retirement. It is primarily aimed at employees but all New Zealanders under the age of 65 may join a KiwiSaver scheme. All eligible employees starting a new job after 1 July 2007 will be automatically enrolled in a KiwiSaver scheme and must opt out if they do not want to be part of the scheme.
Employees contribute either 4% or 8% of their gross earnings. From 1 April 2008, employees' contributions are matched by employers' (to be phased in over four years) starting with 1% of the employee's gross salary, rising to 4% by 1 April 2011.
Provisional tax: People who operate a business as a sole trader, limited liability company or other business entity have to account for their own tax progressively during the year. This is referred to as 'provisional tax'. If the tax you have to pay is $2,500 or more on your end of year tax return you need to pay provisional tax the following year.
Provisional tax is payable in three instalments during the year, based on what you expect your tax bill to be. The amount of provisional tax you pay is then deducted from your tax bill at the end of the year.
Goods and Services Tax (GST)A value added tax called goods and services tax (GST) is charged on almost all goods and services in New Zealand at 12.5%. There are various exceptions including exported goods and services.
More about New Zealand Tax Rates
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