[Lupin]

Just filling out the IRD number form (http://www.ird.govt.nz/resources/file/eb8fd241e249ec1/ir595.pdf) but could do with a little clarification on number 9.

9. Do you qualify for a temporary tax exemption on foreign income?
(please read Note 2 on the back)

Note 2 says:

2. Question 9: Temporary tax exemption on foreign income
You qualify for a temporary tax exemption on foreign income for four calendar years (up to 49 months) if you fulfil these requirements:
• you arrived in New Zealand on or after 1 April 2006, and
• you haven’t been a New Zealand tax resident at any time in the past 10 years prior to your arrival date in New Zealand.
Also note:
• You can only claim this exemption once.
• You cannot receive family assistance while being tax exempt from foreign income.

I'm concerned about that last point because we need that family assistance :uhoh We won't have any foreign income but we qualify for the exemption, so does that mean we're automatically not entitled to family assistance?

Have I misunderstood the form? What are other people's experiences of this?

Many thanks, a worried Lupin :(

[jo-and-jeff]

It was my understanding that migrants are not eligible for family assistance until they've been here a certain period of time... is that not the case?

:confused:

Jo

[Lupin]

Please no! :no

I'm sure I read on here several times that with PR we qualify for family assistance on touch down....

[Trigirl]

it just means that you get to choose family assistance or tax exemption - you can't have both.

from the IRD website
You or your partner cannot receive Family assistance while being tax exempt from foreign income, but will have to determine which is better for your situation, for example

You and your partner have $1000 worth of foreign interest per year, but are eligible for $5000/year Family assistance in New Zealand if you do not claim the exemption for foreign income. In this situation, it is in your family's best interest to waive the exemption and pay New Zealand tax on the foreign interest and receive Family assistance. You can inform us of your foreign income on your annual income tax return (IR3 for individuals).

if you are caring for a child that is both resident and present in NZ then you can qualify for family assistance even if you've only just arrived.

[Trigirl]

this should help - and there's a number to call them if you aren't sure about anything

http://www.ird.govt.nz/familyassistance/intro/criteria/

[jess]

Trigril - well said :nice1 I think you covered everything.
(tried to up your reputation for it, but apparently need to spread more around first.)

[Lupin]

Thankyou so much Trigirl :)