[EmigratingNZ]

Hi

OH and I are moving to NZ in under two weeks but my current employer may want me to continue working for them on a freelance basis. I am absolutely hopeless when it comes to understanding taxes so I wondered if anyone could tell me how that would work if I am also (fingers crossed) working full-time in NZ.

[IanW99]

Hi

OH and I are moving to NZ in under two weeks but my current employer may want me to continue working for them on a freelance basis. I am absolutely hopeless when it comes to understanding taxes so I wondered if anyone could tell me how that would work if I am also (fingers crossed) working full-time in NZ.

If you earn any income that isn't taxed at source in NZ, then you will need to file an IR3 with IRD (NZ) telling them how much you earned (you will have to convert your overseas income to NZ$ at the appropriate rate for the month that you earned it in).

If your income comes from a country that has a double taxation agreement with NZ such as the UK and you get taxed on the UK income in the UK, then you also provide proof of this tax paid to IRD, and they will give you credit for this (so you don't end up having to pay the same tax twice).

If after all this you haven't paid enough tax based on NZ tax rates, then you will need to pay IRD the difference.

Hope that isn't too confusing?

Ian

[Nick88]

Just get an accountant, it will save you alot of grief, and the IRD are less likely to question (read - audit) your accounts. There are also a few things you would be able to claim against that taxable income, and the accountant would be the best person to tell you about these as everyone's situation is different. A good accountant is worth every penny.

[melly]

If your income comes from a country that has a double taxation agreement with NZ such as the UK and you get taxed on the UK income in the UK, then you also provide proof of this tax paid to IRD, and they will give you credit for this (so you don't end up having to pay the same tax twice).


This also means that NZ and UK tax departments will share their information about your earnings with each other so that you can't try and avoid tax by declaring lower than actual earnings.

[kanatakiwi]

however.... you have a 4 year "foreign earnings holiday" when you first arrive, so for that period, you only claim your NZ earnings to the IRD, they do not want to know about any foreign earnings. I think this is to give you time to transition from one country to another.

[IanW99]

however.... you have a 4 year "foreign earnings holiday" when you first arrive, so for that period, you only claim your NZ earnings to the IRD, they do not want to know about any foreign earnings. I think this is to give you time to transition from one country to another.

Except that the OP is talking about earning income from employment and these are not exempt (and they do want to know about them).

Foreign-sourced income
Section CW 22B provides that all foreign-sourced income derived by a transitional resident is exempt, except for employment income connected with employment performed while a transitional resident and income from the supply of services.

Ian