Who Needs to File a New Zealand Tax Return?

There are two levels of individual income tax return in New Zealand - a full tax return or IR3 which you use if you have received income that has not been taxed at source or you're received overseas income, and a less comprehensive Personal Tax Summary which you use if some of your income may not have been taxed at the right rate.

IR3 Tax Returns

You need to complete an individual income tax return (IR3) if you receive any income that does not have tax deducted when it is paid to you. More specifically, you will need to fill in an IR3 Income tax return if you:

• are self-employed

• had income from a business or rentals

• received income that was not taxed at source

• received overseas income (except income which is exempt under the Transitional Resident tax exemption)

You need to contact Inland Revenue if you should file a return but have not received an IR3 form by late May. IR3 tax returns need to be filed by early in July. For more information see www.ird.govt.nz/income-tax-individual/end-year/ir3/.

Personal Tax Summaries

A personal tax summary or PTS is a form telling wage and salary earners if they've paid too much or too little tax over a year. It is based on information from your employer and any pensions and benefits you've received over the year. It is sent out by the IRD in mid-July each year to people who have received Working for Families tax credits and others who may have under or over-paid tax over the year.

You are required to request a PTS from August if you received more than $200 in interest or dividends that was taxed at too low a rate - e.g. if interest on your bank account, an investment or a dividend you received had resident withholding tax deducted at the wrong rate.

It may be in your best interests to request a PTS if you are due for a refund of tax you have paid, for example if you:

• have expenses on which you can claim tax relief
• had more than one job over the year
• only worked for part of the year
• may be entitled to a tax credit

There are a couple of tax credits (rebates) that you can claim via the PTS if they have not automatically been credited by your employer throughout the year - the Independent Earner Tax Credit, the Income under $9,800 Tax Credit, and Child Tax Credit.

For more information about personal tax summaries see www.ird.govt.nz/income-tax-individual/end-year/pts/.

Other Tax Credits

There are also tax credits available for donations to registered charities and some other approved organisations, childcare fees and wages paid to housekeepers. You can claim these at the end of the tax year with an IR526 form. For more information see www.ird.govt.nz/income-tax-individual/tax-credits/dch-taxcredits/.

Gift Duty

You need to pay gift duty if you make gifts of more than $27,000 in one year. You need to send the IRD a Gift statement (IR195 form) if you make gifts totalling more than $12,000 in a 12-month period, even if you are not liable for gift duty. Gifts made to registered charities are generally exempt from gift duty. For more information see www.ird.govt.nz/duties-levies/gift-duty/.

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.