New Zealand · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
AI-drafted, editorially reviewed. Confirm specifics with the official authority.
When this country treats you as a tax resident
More than 183 days in any 12-month period = resident, backdated to the first of those days; OR a permanent place of abode in NZ.
- Primary test
- Composite test
- Day threshold
- 183 days
How days are counted: More than 183 days in any 12-month period OR a permanent place of abode
Also makes you resident
- New migrant 4-yr transitional residence: foreign income exempt
Tax authority: ird.govt.nz
Tax residency is decided separately from immigration status — these tests can make you a tax resident whatever visa you hold, and leaving a visa behind does not by itself end them.
Count your days against this rule Compare residency tests across countries
New Zealand's taxes are run by Inland Revenue (IRD): income tax and GST, with no general capital gains tax. Residents are taxed on worldwide income; a transitional exemption can apply to new migrants' foreign income.
New Zealand's taxes are administered by Inland Revenue (IRD): income tax and GST. There is no general capital gains tax. Residents are taxed on worldwide income.
- Inland Revenue (IRD) administers income tax and GST.
- There is no comprehensive capital gains tax.
- Tax residents are taxed on worldwide income.
- 1
Determine your tax residency
You are a New Zealand tax resident if you have a permanent place of abode or meet the day-count tests; residents are taxed on worldwide income.
- 2
Get an IRD number
Apply for an IRD number from Inland Revenue; you need it for work, bank interest and filing.
- 3
Understand the taxes that apply
Identify income tax (PAYE for employees), GST on most goods and services (business), and the ACC earner’s levy; there is no general capital gains tax.
- 4
Have PAYE deducted
Employers deduct PAYE and the ACC levy; use the correct tax code to avoid over- or under-payment.
- 5
Confirm or file your income
Inland Revenue auto-calculates many people’s tax; check your account in myIR and file an IR3 if you have other income (tax year ends 31 March).
- 6
Pay, keep records and get advice
Pay any balance, keep records, and get advice for foreign income and the bright-line property rules.
- Tax residency determined (permanent abode / day-count)
- IRD number
- Applicable taxes identified (income tax, GST, ACC levy; no general CGT)
- Correct tax code for PAYE
- Income confirmed / IR3 filed if required
- Bright-line property rules checked
- Records kept
- Advice for foreign income
- Inland Revenue (IRD)
National tax authority.
Frequently asked questions
Is there capital gains tax in New Zealand?
There is no comprehensive capital gains tax, though some property sales and share-trading gains can be taxable.
What is the transitional resident exemption?
New migrants may get a temporary exemption on certain foreign income for a limited period after becoming tax resident.
What is the GST rate?
GST applies at a flat rate to most goods and services.
Government portals
- govt.nz — New Zealand government services portal
- Immigration New Zealand — Visas, work/student visas, and residence
- Inland Revenue (IRD) — Income tax, GST, and the IRD number
- business.govt.nz — Company registration, employment, and compliance