New Zealand Tax Residency

Tax 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.

Two separate conditions of tax residency apply for individuals, either of which can qualify you as New Zealand tax resident:

1. 183 Day Rule: any person present in New Zealand for more than 183 days in any 365 day period is deemed to be a tax resident for taxation purposes. When the 183-day rule applies, a person becomes tax resident in New Zealand from the first of those 183 days.

2. Permanent Place of Abode Test: If you have an enduring relationship with New Zealand you may be deemed to be New Zealand tax resident. The Permanent Place of Abode test 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

• whether a person intends to stay in New Zealand.

The permanent place of abode test overrules the 183 day condition.

New Zealand has a double taxation agreement with the UK, so you won't be taxed twice on any income.

Don't hesitate to contact us if you have any questions about your tax position as a UK migrant to New Zealand or a Kiwi returning from the UK.