Im an Aussie resident looking to buy a investment property in NZ. Can anyone with experience in this area tell me what the income tax rate is in NZ for non residents earning rental income. Would i have to get an accountant in NZ to do the tax return there and then also an Aussie accountant to do my tax here and combine the overseas earnings.
Any help appreciatedHi Pgrim
I am an Australian resident with 1 IP in NZ and currently purchasing a 2nd one.
Can’t help you with the tax rate but you could check out http://www.ird.govt.nz. The Inland Revenue Department is the NZ equivalent of the tax dept here.
Yes you will need to put in a tax return in NZ so will be best to use an accountant there to do it for you. You will then have to declare the NZ income and NZ tax paid on your Australian tax return.
There are lots of items on this forum regarding investing in NZ.
Shar
My accountant suggested I get a credit card in NZ and use it as i wish. There is no real need to bring the money back and if it doesn’t hit our shores, why declare it?
Byronent
Adelaide SAThe ATO is currently looking for these kind of transactions (since they can data match with the banks). Right now it’s a kind of grey area, but it can (and does) bring up red flags aginst you, which increase your chances of an audit and also a please explain (it comes under non decleration of income).
Rgds.
Lucfer_auByronet
You are legally required to declare all income on your tax return! (Which is a pain).
Terryw
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Mmmmm an expensive exercise with accounting fees if you have properties on many different countries, which is what i am planning to do.
Still back to part of my first question, does anyone know what the rate of tax is in nz for a non resident on a low income ie rental income from one property? is there a tax free threshold?no probs guys just found my answer
thanks for the link ‘shar30441’
my tax rate would be 19.5%Hi pgrim,
Unfortunately you will not escape Australian tax rates if there is a double tax agreement between the country you’re investing in and Australia e.g. New Zealand.
The tax you’ve paid in NZ will count as a credit towards the tax you will have to pay in Oz. Of course, some people will suggest a plethora of schemes to get around the system but at the end of the day, if you get audited, you will pay the penalty.
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