With a fairly simple national tax system, Auckland is an easy and fair place to do business.
The New Zealand tax system features relatively low levels of personal income tax and a general goods and services tax (GST) of 15 per cent. Company income is taxed at 28 per cent. Tax rules apply throughout the country, with every territory operating under the same system.
For migrants relocating here, it is important to know that as a tax resident in New Zealand, you must declare all your local and all your overseas income on your annual tax returns. To find out more about the tax concessions and relief on overseas income, visit the New Zealand Now website.
New Zealand tax overview
|Personal income||33% from $70,000|
|30%: $48,001 to $70,000|
|17.5%: $14,001 to $48,000/td>|
|10.5%: $0 to $14,000|
|Tax credits||Working for Families credits for low and middle-income earners.|
|Social security & insurance levies||The public social security and healthcare systems are paid for through general tax, while our no-fault accident compensation scheme (ACC) is paid for by employers through a business levy. Employers also pay insurance cover based on industry risk.|
|Capital gains||Not on New Zealand investments – with some exceptions. Applies to foreign debt and equity investments.|
|Dividends||Imputation avoids double tax by linking company tax and shareholder dividends.|
|Tax on savings||Tax is paid on income at source, and distributions are tax-free. There is little tax relief on retirement savings and no personal mortgage interest tax benefits.|
|Fringe benefit tax (FBT)||Tax is paid by employers on fringe benefits such as employee funds, goods and services, vehicles and low-interest loans.|
|Sales & excise tax||Goods and services tax (GST) is 15 per cent. Excise tax is paid on petrol, tobacco, alcohol.|
|Double taxation agreements with 40 countries||The New Zealand tax system can provide credits for tax paid overseas on income that is also subject to New Zealand tax. Read how to avoid double taxation.|
Visit the government’s Inland Revenue website for more information.