[janmommy]

Does NZ tax authorities allow a person to earn a certain amount before having to pay tax?

UK alllows us £8000 before tax.
Does NZ have a similar thing?

:confused:

[wiki]

No, you're taxed on your first dollar - the tables are here

http://www.ird.govt.nz/how-to/taxrates-codes/itaxsalaryandwage-incometaxrates.html

[janmommy]

What about American Dollars?
We live in the UK but my daughter has made some US$ from selling some of her writing. Will that be taxed?

[IanW99]

Once you have become tax resident in NZ (living in NZ for more than 183 days) all your world-wide income is taxed (from when you arrived).

You have to convert all foreign currency to NZ dollars when submitting your IR3 based on the exchange rate at the time when you earned the income (mid month, end of month or day rate can be used).

If you arrived in NZ on or after 1st April 2006 then there is the option of four years tax exemption on some forms of foreign income.

This thread will give you more details
http://www.emigratenz.org/forum/showthread.php?t=11637

Ian

[Lupin]

The lack of tax free allowance is quite a blow for those of us who take on small part time jobs due to family commitments :(

[anna_c]

Yes you are taxed from the first dollar (which can be tough) however at the end of the year if you earn under a certain amount and meet other criteria you can often claim some of it back.

[jen]

The lack of tax free allowance is quite a blow for those of us who take on small part time jobs due to family commitments :(

It is, isn't it? I'm about to start a part-time job and it's a little depressing thinking I'll be taxed right from the start.

On the other hand, in my case I'm better off than I would be in the US since there my income would be lumped together with my OH's and we could end up in a higher tax bracket. Here I'll at least be taxed at a lower rate based on my own earnings & it won't affect his taxes negatively either.

Jen