[starkhorn]

Folks,

I'm just trying to understand the tax system in NZ compared to say UK or Ireland or France.

In UK if I'm a permanent salary employee, the tax is doing at the source (via the employer). assuming that I'm no other income it's usually not necessary to submit a tax return for the year.

In France, if I'm a permanent salary employee, the tax is partly done at the source (via the employer). But it's mandatory to also submit a tax return even if I've no other income. Basically it means people get taxed twice in France which is a bit of a pain.

So what's the situation in NZ? From what I understand salary employee is taxed entirely at the source (via employer) so normally no other tax return is needed.

I guess a salary employee only needs to submit a IR3 if he has additional income (like interest from bank account or rent, etc).

Is this correct? and if not then what's the situation in NZ?

Many thanks.

Starkhorn

[Trigirl]

thats basically right. bank interest also has tax deducted at source so even if you have some income from this you still may not need a personal tax summary at the end of the year.

this gives some info on when a tax summary might be needed
http://www.ird.govt.nz/income-tax-individual/itaxsalaryandwage-personaltaxsummary.html

[Trigirl]

by the way IR330 is the form you use to change your tax code - you complete it when you start a new job. everyone completes one.

i think the one you mean is the individual tax return which is IR3.

[starkhorn]

Hi Trigirl,

Yes indeed I did mean IR3 instead of IR330 sorry about that.

Ok so the IR3 then is more or less for people who rent out other properties or are self-employed etc, etc?

Cheers
Starkhorn

[starkhorn]

Ok from that link you sent me, I found the online calculator and I just used the "Do you need to file an IR3 return or receive a personal tax summary for 2006?" to see if I need to do the IR3 form.

http://www.ird.govt.nz/calculators/keyword/individualincometax/

Thanks for that, I hadn't clicked on any of those calculator links before.

Cheers
Starkhorn