Starting a new job in New Zealand? Here’s what you need to know!
Starting a new job as a working holidaymaker in a new country can be a daunting task. On top of that you will have to wrap your head around an entirely new tax system.
Trust us when we say that we know tax is not the most exciting subject and it may not be the number one thing on your mind.
However, it is very important that you understand your tax obligations and requirements as a working holiday maker in New Zealand.
To help get you started we have answered all the questions you may have about starting a new job in New Zealand.
Download your FREE New Zealand Tax Guide
Do I need an IRD Number?
Before you can start your new job in New Zealand you will need an IRD (Inland Revenue Department) number.
The IRD Number is a unique tax number that is distributed by the Inland Revenue Department of New Zealand. It allows you to pay the correct amount of tax throughout your time working in New Zealand.
Without an IRD number you will be taxed at a significantly higher rate so it's important you get one before you start work. You can apply for your IRD number easily on the IRD website.
What is an IR330 form and will I need one?
The IR330 form is a Tax Code Declaration form that you must fill out when you start a new job in New Zealand. You should note that you must complete a separate IR330 form for every form of income you have. You will receive your IR330 form from your employer and will be asked to fill out your name, IRD number and tax code.
In order to determine your personal tax code you will receive a flowchart alongside your IR330 form or you can use the "Tax Code Finder" on the IRD website.
How do I determine my New Zealand residency status?
Simply put, if you stay in New Zealand for less than 183 days in a 12 month period you are considered a non-resident for tax purposes.
You will be considered a tax resident in New Zealand if you spend more than 183 days there in any 12 month period. It's important to note that these 183 do not have to be consecutive.
You will also be considered a tax resident if you have a 'permanent place of abode' in New Zealand or you are away from New Zealand in the service of the New Zealand government.
How much tax will I pay in New Zealand?
Did you know that the tax you pay in New Zealand is deducted before you receive your wages so the income you get into your account is all yours!
The New Zealand income tax rates are as follows:
| Yearly taxable income | Tax Rate |
|---|---|
| Up to $14,000 | 10.5% |
| From $14,000 - $48,000 | 17.5% |
| From $48,000 - $70,000 | 30% |
| $70,001 and over | 33% |
| No-notification (no IRD number) | 45% |
Will I have to file a New Zealand tax return?
This depends on your individual circumstances, but the majority of working holiday makers must file a tax return in New Zealand.
You are required to file a tax return if you arrived in New Zealand in the middle of the tax year (the tax year runs from 1 April to 31 March) or if you have any income from overseas.
Even if you are not required to file a tax return we recommend you do so anyway as it's the only way you can apply for a tax rebate from New Zealand!
The Average New Zealand tax refund is $550 so it is definitely worth your while filing a tax return. Simply use our tax back calculator to get your tax refund estimate!
The New Zealand tax deadline is 7 July each year. If you miss the deadline you may face fines and penalties so it’s important you file your tax return before the deadline.
Download your FREE New Zealand Tax Guide
Who can help me file my New Zealand tax return?
You can always file your tax return yourself but filing for the first time can be quite confusing and take up a lot of your time especially in a new country but, not to worry, Taxback can help you to calculate and prepare your tax return for NZ.
If you apply with Taxback our team will handle all of the tricky paperwork and will help you get your maximum legal tax refund all while staying fully compliant with the New Zealand tax authorities. Once we have secured your maximum tax refund we will transfer it straight to your bank account, anywhere in the world.
You can avail of our 24/7 customer support and tax refund live chat service and you can even use our tax refund calculator to check how much tax you are owed.
Apply for your New Zealand tax refund with Taxback today.
Cookie preferences