[sarabear]

Hi All,

I'm currently in salary negotiations for a position in NZ, and I've been offered a one-time signing bonus as part of the package. I'm wondering how much money it will actually be after taxes. I am in the top tax bracket, so does that mean the bonus would be taxed at the highest tax rate (39%) or are there separate rules for non-salary income?

Thanks!
Sara

[jubjub]

Any bonus payments from an employer (performance or otherwise) we have had have been taxed at the normal rate, so yup, looks like you would lose 39% of it, bummer eh??

[IanW99]

As said by Sal, your bonus would be included in your income for tax purposes for NZ.

It may not be quite so simple to say you will pay 39% as there are several factors that may affect this.

As you are / will be new to NZ, if you get taxed and how much would be dependent on where you are resident for tax purposes.

Even if you were resident in NZ for tax purposes then the amount that you would get taxed would depend on how much income you have / will have earned this tax year which if less than NZ$60K will get taxed at a lower rate than 39%. Of course this assumes that you would get the bonus this tax year?

Ian