[voth30]

Hi All,

Just need a little help from fellow forumers on whether the interest earned from savings or term deposits in New Zealand banks are taxable (accordingly 19.5% or 33%)?

My reason is that if it is taxable, then I would leave the money in my country of origin and placed it in New Zealand currencies where the interest earned is tax free and ask someone to remit the interests earned to me in New Zealand.

Your help in this matter is greatly appreciated.

Thanks.


Vincent

[acisman]

Yes I am afraid it is taxable at the rate applicable to your annual earings from all sources.

If you live in New Zealand you have to pay tax on worldwide earnings, so even if you leave it in an account in your country of origin or in an overseas account, you will have to declare the interested earned.

I will be keeping an account open in the UK and receiving my occupational pension into this account. I will be taxed by the UK, but I must still declare the earning in NZ and I will then receive a tax credit for the tax already paid in the UK, paying the balance of the tax in NZ.

I hope this is of some help.

[Dave & Sandra]

Also you are taxed at the higher rate until you give the bank your IRD ( Inland Revenue Department) number. I gave them mine and I got a reply to say - thanks you will now pay tax at 19.5%

[Wannaway]

Don't forget that if you have the higher rate of tax deducr=ted on interest before you get your IRD no ( and will be a lower rate payer) that you can recalim the excess from the Revenue at the end of the tax year.