New Immigrants and Business

Who Pays Income Tax in New Zealand
Every person that is resident in New Zealand pays income tax on all income that is earned. The income must be that which is classified as taxable income. The person receiving the income is the important criteria rather than where the income comes from.

Income Tax is imposed on the “taxable income” of every taxpayer for each “income year”. In N.Z the income year runs from 1 April to the following 31 March. The taxable income is the final amount deemed to be liable for tax under tax law.

Tax is Payable on World Income
A person who is not resident in New Zealand is liable for income tax only on the income that is derived here. They must have been personally present in this country for at least half of the income year to be classified as a resident for taxation purposes.

It is important to establish whether a person is resident in New Zealand or not because they are liable for taxation in this country but on their total world income. If they have paid tax overseas then depending on which c...

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