Other Taxes information for Expat
Anything you buy in New Zealand, whether it is a pie at a local cafe, a month of satellite TV service or an hour of a lawyer’s time, is subject to GST, or the Goods and Services Tax. As of October 2010, GST is charged at 15%. GST is almost always included in the list price of items, especially at stores, however, if you are ever in doubt, especially in a case where services are concerned, ask if GST is included.
In Auckland, property taxes are referred to as Land Rates and they are the responsibility of the property owner. Auckland city rates vary depending upon which suburb you live in. The rateable value is assessed for taxation purposes and is not the same as market value, however, during the recent recession and property price crash, the GV (Government Valuation) was often used as a guide to the market value of a property. The money earned from rates payments is used by the council to maintain the region, both economically and environmentally, and to protect it for the future.
Water and waste water rates in Auckland are billed by Watercare directly to the property owner. Most water in Auckland is metered, so if you’re prudent with your water consumption then your water and waste water bills won’t be too high.
Non-residents, Visitors and Seasonal Workers
If you are in New Zealand for 183 days in any 12 month period, then for tax purposes you will be classed as a New Zealand tax resident and will be liable to pay tax on any income earned. You will be liable for tax from the date of your first arrival into New Zealand. The 183 days do not need to be consecutive. More information here.
There is a seasonal worker scheme available. Anyone visiting NZ who works in one of the agreed seasonal work industries will be classed as non-resident but will pay a flat rate PAYE amount. More information here.
If you are planning on starting a business in Auckland, then you need to be aware of the various different types of business taxes and credits, some of which are:
- Business Income Tax
- E-Commerce and Tax
- Investment Income Tax
- Rental Income Tax
- Import Duties
- Research & Development Credits
- Tax credits for donations
- Withholding Tax
- and many more…
Check out the IRD Business & Employers page for more information.