New Zealand’s Inland Revenue has released its long-awaited Interpretation Statement (“IS”) on tax residence. The IS, which applies from 1 April 2014, covers the residence tests for individuals, companies, and trusts. A crucial part of the residence analysis for individuals is recognition that a person must either be present for more than 183 days in a 12-month period, or have a permanent place of abode, to be New Zealand tax resident. The guidance from Inland Revenue on tax residence will have an impact on New Zealand expatriates and their families (particularly those living and working in non-Double Taxation Agreement countries) and potentially their New Zealand employers as well (if overseas secondees are treated as tax resident in New Zealand.
Download PDF of Flash International Executive Alert:New Zealand – Updated Guidance from Inland Revenue on Tax Residence