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NZ Tax Residency Print E-mail

tax residenceTax residency is the basis on which taxpayers are subject to or liable for income tax in New Zealand. These tests are completely separate tests from the tests for immigration or residence.

For individuals, two separate tests apply:

  1. 183 Day Test: any person present in New Zealand for 183 days or more in any 365 day period is deemed to be a tax resident for taxation purposes; and
  2. Permanent Place of Abode Test: "permanent place of abode" is not defined in the Income Tax Act, but the courts have ruled it encompasses the durability of a persons association with New Zealand and includes such factors as:
  • the physical presence of the person; 
  • the presence of the persons immediate family;
  • the availability and use of a dwelling and accommodation patterns;
  •  employment and business interests;
  • family and social ties in New Zealand.
A company is tax resident in New Zealand if:
  1. it is incorporated in New Zealand 
  2.  it has it’s head office in New Zealand
  3.  the control of the company by its directors is exercised in New Zealand
There is an attractive tax exemption available to new residents for their first four years in New Zealand; please see our article Income Tax Exemption for New Residents.
 
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