[Avisaurea]

As soon as I get to NZ I will be taxed by increased rate instead of 2% non resident approved issuer levy. There 3 options for this: 19.5%, 33 and 39%.

Does it still related to my salary? Or is it purely depends on how big will be the total interest earned?

Any suggestions?

Thanks in advance.

Elena.

[Avisaurea]

Anyone who could answer?

[wiki]

If you are living in NZ you are taxed on salary+interest+any other cash you earn in NZ (ie from rental properties)

If I remember rightly, banks take the tax off your interest automatically before they give it to you, and then when you do your tax return you get either some of that back or you have to pay more depending on your overall income.

So the banks might only take off 19.5% but if your interest+your salary take you into the next tax band you will pay 33% on the amount over.

My NZ bank accounts are non-resident, so I can't tell you how much interest they currently withhold.

http://www.whatstax.govt.nz/need-to-know/tax-rates/?gclid=COCW1LvghYkCFRh5MAodVjqSVg is a good online resource with easy answers

[Trigirl]

work out which tax band your total earnings will take you into then ask the bank to tax you at that rate. this means that at year end you don;t have any extra tax to pay or have to apply for a refund. but don't worry if you get ti worng you can sort it out on your tax return

[Avisaurea]

Thanks you guys!

One more question. I have a joint bank account with my husband who is not working at the moment. He has got no salary, no other income. So the banks might only take off 19.5% from him and will certainly take off 39% from me.
Is it possible to include interest into tax band on his total earnings and not to include in my?