Macau (SAR) – only if you have a passport for a special administrative region Macao Malaysia Malta Mauritius Mexico Monaco Netherlands Norway Oman Poland Portugal – if you have the right to live permanently in Portugal Qatar Romania San Marino Saudi Arabia Seychelles Singapore Slovak Republic Slovenia Spain Sweden Switzerland Taiwan – if you have permanent residence United Arab Emirates United Kingdom (UNITED KINGDOM) – if you are with a British or British Passport which shows that you are entitled to have permanent residence in the United Kingdom United States of America (USA) – including US citizens Uruguay Vatican City A non-resident is subject to New Zealand tax only on income earned or received in New Zealand (regardless of the place of payment). The tax rates that generally apply to resident taxpayers are those set out above. Taxes in New Zealand are collected nationally by the Inland Revenue Department (IRD) on behalf of the New Zealand government. National taxes are levied on the income of individuals and businesses, as well as on supplies of goods and services. There is no capital gains tax, although some “gains” such as profits from the sale of patent rights are considered income – income tax applies to real estate transactions in certain circumstances, especially speculation. Currently, there are no property taxes, but local property taxes (rates) are administered and collected by local authorities. Certain goods and services are subject to a specific tax called excise duty or levy, . Β excise duty on alcohol or tax on gambling. These are collected by a number of government agencies such as the New Zealand Customs Service. There is no social security tax (payroll tax).
What are the current tax rates for residents and non-residents in New Zealand? Companies and corporations are taxed at a flat rate of 28%. A comprehensive overview of income tax, social security tax rates and tax legislation that affects foreign workers. How does New Zealand`s tax legislation behave? Below, we`ve highlighted a number of tax rates, ranks, and measures that detail income tax, corporate tax, excise tax, property tax, and international tax systems. Until 1982, only 5 per cent of total land value was taxed, and property taxes were also considered double because of their similarity to local government property tax levies, with property taxes (rates) accounting for 57 per cent of local government revenues in 2001. [33] Income tax rates are the percentages of tax you must pay. High marginal income tax rates affect labour decisions and reduce the efficiency that governments can use to increase revenues from their individual tax systems. Benefits in kind are generally subject to the social benefits tax (FBT) payable by the employer. The law allows employers to use FBT rates that correspond to the personal income tax rates of the employee receiving the benefit (the maximum fbT rate being 49.25%, based on the higher marginal tax rate). The intention is to make employers indifferent from a tax point of view as to whether a benefit in kind is granted and FBT is paid or whether the employee receives equivalent remuneration in cash. The FBT rate is set in such a way that an employer does not bother to provide a benefit in kind or a gross salary so that the employee can acquire the benefit. *See the New Zealand company`s summary for a description of reduced rates based on shareholder participation and contract facilitation. At what stage is the employee allowed to start working when applying for a long-term work and residence permit (local secondment/recruitment)? Individuals are subject to global income tax even though they are tax residents of New Zealand.
All global income of a New Zealand resident taxpayer is taken into account when determining its effective tax rates. The tax rates for the 2021 income year are 10.5% on income up to 14,000 New Zealand Dollars (NZD), 17.5% on taxable income between NZD 14,001 and NZD 48,000, 30% on taxable income between NZD 48,001 and NZD 70,000 and 33% on taxable income above NZD 70,001. CEO Sam earns $200,000 a year (gross). Under current individual tax rates (see above), Sam would pay $56,920 in taxes, so he would have a net salary of $143,080. Companies pay an income tax of 28% on profits. [23] The tax rates for natural persons engaged in commercial activities (i.e. the self-employed) are the same as for employees. [24] (See personal tax rates above.) Gross compensation for income in the starting year is not required. Therefore, lower marginal tax rates may apply if a person leaves New Zealand at the beginning of the income year or arrives late in an income year. When it comes to work visas, New Zealand has three main work visa flows for skilled workers: Essential Skills (“ES”), Talent-Accredited Employer (“Talent”) and The Long-Term Skills Shortages List (“LTSSL”).
Immigration New Zealand has announced a major change to the temporary work visa procedure, which is expected to take effect in mid-2022: www.immigration.govt.nz/employ-migrants/introducing-new-accreditation-and-single-work-visa/employer-leads-visa-application-process. These three work visa streams will no longer exist as of November 1, 2021. They are replaced by a single visa called an Accredited Employer Work Visa (“AEWV”). However, the introduction of AEWV has been postponed to mid-2022 without any political announcement being made on what it will replace in the meantime. www.immigration.govt.nz/employ-migrants/introducing-new-accreditation-and-single-work-visa/employer-leads-visa-application-process New Zealand`s income tax rates depend on the increase in your income. .