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Am I a NZ Tax Resident?

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Am I a NZ Tax Resident?

Determining your tax residency status for NZ involves two tests:

  • Days present in New Zealand test
  • Permanent place of abode test

If you are a New Zealand Tax Resident, you will need to pay tax in New Zealand.

*Please note that tax residency is not the same as residency when referred to with regards to immigration.

Days Present in New Zealand Test

  • This is simple and straight forward; If you spend over 183 days in New Zealand during any twelve month period, you are deemed to be a tax resident.
  • The 183 days do not have to be consecutive, and they do not have to be in the same financial year.
  • If you can choose any two dates a year apart, and count more than 183 days between them when you were present in New Zealand, you will be deemed to become a tax resident from the first of those days.
  • A part day counts as a full day, so the day of arrival and the day of departure are included.

In addition to the Days Present rule, there is the Days Absent rule.

Being present for 183 days in a 12 month period means you are a tax resident however, if you then stay out of New Zealand for more than 325 days (days need not be consecutive) in a 12 month period, you can terminate your tax residency.

If this circumstance applies, you will be a non-resident from the first of those 325 days.

You will also be deemed a tax resident if you have a permanent place of abode in New Zealand, regardless of whether or not you breach the days present test.

Tax laws can get rather complicated and contain many grey areas. To ensure you stay on top of your obligations, we recommend you consult us if you are unsure. Phone us on 09 273 7377