IRD # and the Tax Man

richsadams · Posted: Fri Apr 30, 2004 4:07 am Post subject: IRD # and the Tax Man

Greetings All!

It's a simple matter, but one that's overlooked sometimes...NZ tax obligations. Eek

My wife and I are immigrating next month and wanted to open a bank account before we arrived. That can be done easily over the internet. We found some reviews and opted for Bank Direct/ASB as they were highly rated for customer service, etc.

The bank did us a great favor up front by explaining that although we could open an account any time, if we didn't have a NZ IRD number (equivalent to a U.S. Social Security number) that we'd be subject to the highest tax bracket on any earnings. Yikes! Nutcase

So we applied for an IRD number and in about four weeks time received them. Now we'll be taxed on an earned income basis, which for us will be a bit lower than the top rate...at least to start. Wink

Here's the NZ Inland Revenue Department's website:

http://www.ird.govt.nz/

And here is their application page:

http://www.ird.govt.nz/library/publications/irdnumber.html

It's a small thing, but in the long run could save you some $$$! Nice One

Raeven · Posted: Fri Apr 30, 2004 4:36 am Post subject: Yikes!!

Jaysus, Rich,

Thanks so much for this post! It's something that as you pointed out is easily overlooked and could be quite costly. I've just added it to our "To Do" list before leaving!

Appreciate the bank information, as well. You're tops!

Rae

richsadams · Posted: Fri Apr 30, 2004 4:47 am Post subject: IRD

Hi Rae,

My pleasure!

Hopefully this will continue some positive Karma for everyone's Kiwi quest! fingers crossed

kiwi · Valued Member Joined: 02 Apr 2004 Posts: 126

Hi,
if you want to convert currency at wholesale rates www.broadbase.co.nz can do that. Email Jeremy Henderson, he is in Chch but works nationwide...and he doesnt charge!!!
You still need an nz bank a/c but he can sort it all after that.
Nic

roberto · Posted: Fri Apr 30, 2004 8:55 pm Post subject: NZ IRD

When you eventually roll up on the shores of NZ, you can apply for an IRD number at the local Tax office (you just need an address to which the office will send the documents so could be a Hotel) and if you make a priority application (the nice lady at the desk faxes the application off), can obtain a number in 48 hours. The tax office is open all week and on Saturdays til 1300 with a toll free number to call and they are very helpful and efficient. Once you get your IRD #, give it to the Bank (and your employer) so that the tax that you pay is not at 33%.
ASB bank are very good. They have Foreign Currency accounts so that you can bring your money with you, keeping your money in homeland currency and getting instant access at the Kiwi Interest rate. Can't get better than that! Nice One