Business with Australia

Australians Doing Business in N.Z
Business transactions can vary from a one-off sale to operating through a company or establishing permanent business premises in New Zealand.

Any New Zealand tax requirements you have will depend on the way you operate your business, and whether you are a resident for tax purposes. Here you will find situations and information that are commonly of interest for people doing business in New Zealand from Australia.

Establishing your Market in New Zealand
When you begin to establish a market in New Zealand you may need to travel to New Zealand to decide which market your goods or services will be sold to, establish contracts or check that your operations in New Zealand are running smoothly.

N.Z’s tax year is 1 April to 31 March. Unless you get consent from IRD to use a non-standard balance date you may need to apportion your overseas income to fit the New Zealand tax year. You can write to IRD to apply for a non-standard balance date.

Individuals – Tax Residency Requirements
You are a tax resident in New Zealand if:

  • you are in New Zealand for more than 183 days in any 12-month period, or
  • you have an "enduring relationship" with New Zealand.

A person who has a "permanent place of abode" in New Zealand is a New Zealand tax resident. "Permanent place of abode" means more than just the dwelling you live in; it covers all your ties and links with New Zealand. These ties may be social, physical, economic or personal.

General Info for NZ individual Tax Residents

The year you become a tax resident
If you have recently arrived in New Zealand and have not received income from New Zealand before, you will need to apply for an Inland Revenue Department (IRD) number. In your first New Zealand individual tax return as a tax resident you must include your worldwide income from all sources from the date you arrived in New Zealand.

The year you cease to be a tax resident
If you will no longer be a tax resident and will not be receiving income from New Zealand from the date you leave, you may need to complete an Individual tax return (IR3) up to the date of your departure. You can file your return before the end of the tax year. You can state that you are leaving New Zealand permanently by filling in a Refund application - people leaving New Zealand (IR50) form and sending it in with your return.

Make sure IRD have your overseas address. If you will be receiving income from New Zealand after you stop being a tax resident, you will have to pay tax as a non-resident.

If you continue to earn New Zealand income after you leave
If you will be receiving income after you stop being a tax resident, you must file an Individual - non-resident individual (IR3NR) tax return to the end of the tax year (31 March) following your departure. Include your worldwide income received until the date you left, and your New Zealand income received after that date.