[thepiesleys]

Hello everyone

We are currently wading through the minefield that is finding the cheapest way of transfering our savings to NZ. We have chosen ASB ( on advice from a number of you) and sort of knew what we were doing untill on the form it says about resident/migrant tax. We have not got PR at the mo (going on visitors and getting job then WTR) does anyone know that because we do not have PR that we have to pay 2% on our savings to the IR ?

it says for tax purposes to tick resident or none resident and when we tick none resident it says we can either:-
1. Have non-resident levy deducted (2%) and paid over to NZIR

or

2. Have non-resident witholding tax at the relevant country rate deducted and paid to NZIR

What does it all mean arghhh!!!??? what with still wotking to the bitter end here and preparing for job there and packing and shipping and 3 kids and leaving parties and hangovers and, and, and, - i'll probably get to NZ just in time for my first nervous breakdown...

Sue.

[Trigirl]

firstly - DON'T PANIC :)

this tax is not on your savings - it is only on interest earned while it is in the NZ account (it says "based on gross interest paid" - or at least it used to)

[thepiesleys]

D'oh...

Panic over ... :uhoh

[Trigirl]

what with still wotking to the bitter end here and preparing for job there and packing and shipping and 3 kids and leaving parties and hangovers and, and, and, - i'll probably get to NZ just in time for my first nervous breakdown...


I really do feel for you on this one. I can't begin to imagine how much harder this is with kids to sort out. The whole "new job, new life" thing is scary enough.

Lots of luck - you'll be there before you know it.

[Avalon]

1. Have non-resident levy deducted (2%) and paid over to NZIR

or

2. Have non-resident witholding tax at the relevant country rate deducted and paid to NZIR
.
I asked the IR about this a while back.

Most places will tax you at 10% if you are a non resident. Asb will do this, so as Trigirl says, if you earn $10 interest in a month - $1 goes to the beloved IRD.

SOME places that hold savings for people are exempt from paying the tax, so non residents can get tax free interest. In that case - you pay 2% (a "levy") to adminsiter the scheme. So on $10 interst a month - 20c goes to pay the levy. You would have to sign up for it - and not all places offer it.

[seagulls]

The 2% and 10% that people have quoted are correct for Non-residents located in the UK.

Don't get used to it though. When you get there and get your IRD number it is then 19.5%, 33% or 39%