NZ Residency and Taxes
ers99w
18th July 2008, 03:54 PM
Once you become a NZ PR, and then move to, say, the US for 20 years, do you have to still pay taxes in NZ each year?
what if you are planning to come back to NZ for the healthcare in retirement if the US stays on the same course it's on??
eternalkiwi
18th July 2008, 09:31 PM
If you have no immediate family, investments, employment or businesses in NZ or have not spent time in NZ, you are not likely to be a NZ tax resident.
http://www.ird.govt.nz/yoursituation-nonres/tax-residency/
If you remain a NZ tax resident you would still be liable to pay tax on your world-wide income.
Shawn
ers99w
18th July 2008, 11:12 PM
wow, that's interesting. so even if i'm a 'permanent resident' of NZ and have the right to live there whenever i want (and take part in government benefits like kiwisaver and the health care system), i don't have to pay taxes every year? the US, i think, makes us file/pay taxes whereever we are...
akp713
20th July 2008, 05:49 AM
No the US only taxes you on income earned in the US. You still have to file a tax return every year but just to show you earned no US income.
The NZ system is more restrictive, if you pay into Kiwisaver I'm pretty sure that would be considered an investment in NZ which means even if you left they would want to tax you on your US income on top of your US taxes. You would have an enduring relationship with NZ and thus still be considered a tax resident.
Oregonkiwi
20th July 2008, 08:06 AM
I agree with eternalkiwi.
No the US only taxes you on income earned in the US. You still have to file a tax return every year but just to show you earned no US income.
That's not quite right - you do have to declare and pay tax on your worldwide income, but can claim an exemption for a certain amount of foreign income. In effect, most people will not be paying US tax on NZ income, but someone with a large income (over the exemption amount) would be liable.
The NZ system is more restrictive, if you pay into Kiwisaver I'm pretty sure that would be considered an investment in NZ which means even if you left they would want to tax you on your US income on top of your US taxes. You would have an enduring relationship with NZ and thus still be considered a tax resident.
But would someone who had left NZ for 20+ years still be paying into Kiwisaver?
nate
23rd August 2008, 06:41 PM
FYI, the amount of income earned in a foreign country which is exempt from taxation if you are a US citizen is $70,000. Once you earn more than that, you have to pay taxes on it.
:: nate ::
Oregonkiwi
23rd August 2008, 08:58 PM
"If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to $85,700 of your foreign earnings. In addition, you can exclude or deduct certain foreign housing amounts."
http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html
