I am considering work in New Zealand but the financial year will be partly split between the two countries. Do I need to file an income tax return in both countries?
1 Answer
Depends how long you'll be resident in NZ for. Less than 183 days? Then no, you won't necessarily be tax resident. You'll need to declare your NZ income (and pay tax) in Australia, but New Zealand won't be fussed.
It all depends on your tax residency
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Well there's a double tax agreement between the two countries ird.govt.nz/international/residency/dta/… So it seems that where you pay tax is defined by your 'permanent home'.– timboCommented May 6, 2015 at 1:26
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Yes, there's a double tax agreement. It covers many circumstances. But tax-residency determines whether you're liable to pay tax in each country. For example, my permanent home could be in the UK and I am tax-resident there, but if I spent more than 90 days a year in New Zealand (over a four year period), then I would also be tax resident there, which is when the dual taxation agreement comes into effect. I would have to pay taxes in both countries, however I will be able to claim (in New Zealand) for taxes already paid in the UK. It all depends on your tax residency. Commented May 19, 2015 at 3:58