Feeling the holiday blues from your working holiday in New Zealand? Well, let’s cheer you up with some good news that you could be owed money!
If you’ve worked in New Zealand, you’ve most likely paid anywhere between 17.5% and 39% income tax on your earnings, so it’s time to claim it back!
How much tax can I claim back from New Zealand?
The average New Zealand tax refund is $550.
You can either apply for your refund yourself directly with the tax office, or you can apply using a tax agent (such as Taxback).
Taxback have 25 years of experience and can go as far back as four years to claim, so it’s definitely worth your while to get your tax refund.
However, the exact amount you will be able to claim back will depend on your circumstances such as:
The amount of income you earned
The duration of your work in New Zealand
How much tax was deducted from your wages
The sort of work you did
So, curious about how much you can claim? Use the Taxback New Zealand tax refund calculator to see how much you are owed!
Can every non-resident claim a New Zealand tax refund?
In short, you will be due a New Zealand tax refund if:
You were on a Working Holiday Visa while working in New Zealand
You worked full or part-time in the last 10 years
You were a Backpacker/Backpacking
You were a student during your time in New Zealand
You want to comply with the tax laws of New Zealand
How do I know if I paid tax while working in New Zealand?
Like most countries’ tax systems, anyone who works in New Zealand even on a working holiday must pay tax.
The New Zealand tax system is called Pay As You Earn or PAYE. Тhis is a progressive system, so the more you earn, the more tax you’ll have to pay.
It is deducted by your employer before you receive your pay, so the amount of income you receive in your bank account, you can keep!
How do I claim my New Zealand tax refund?
In order to claim your tax refund, you must file a New Zealand tax return first.
You can file your return directly with the New Zealand tax authorities yourself.
Or you can use a tax agent like Taxback? Their team will take care of everything and transfer your maximum refund straight to your bank account.
What will I need to file my tax return?
You will need a summary of your earnings or final payslip and a copy of your ID.
This is an official government form that you get from the New Zealand authorities at the end of each tax year. If you choose to use your final payslip, you will find this with your last paycheck from your employer.
Either one of these documents will show your earnings from the year and how much tax you paid.
Will I be taxed as a non-resident or resident in New Zealand?
While on a working holiday visa in New Zealand, you are a non-resident for tax purposes in the country. Non-residents must have stayed less than 183 days (non-consecutive) in any 12-month period.
If you stay for more than 183 days in New Zealand, then you will be considered a New Zealand tax resident.
Read Also:
New Zealand Working Holiday: What to Know Before You Go
New Zealand’s Tax System – Let’s get to know the basics
New Zealand Tax Rates
Yearly taxable income
Tax Rate
Up to $14,000
10.5%
From $14,000 – $48,000
17.5%
From $48,000 – $70,000
30%
$70,000 and over
33%
No-notification (no IRD number)
45%
A list of incomes that are all eligible to income tax:
Working income – such as wages, bonuses, or allowances paid by employer
Self-employed income – includes small business owners, sole traders, and contractors
Social security benefits – includes job seeker support, single parent support, and student allowance
Income from investments eg. stocks, cryptocurrency
Rental income
Income from volunteering – this includes income from charitable work
What is an IRD number?
You will need an IRD number before you can start working in New Zealand.
This is a unique New Zealand tax number that you are given by the Inland Revenue Department. It makes sure you are taxed correctly by the amount as you work. Without it, you could end up paying up to 46.7% of your wages in taxes so it’s vital to get one!
It includes information about the untaxed and taxed income you received in the year, such as your final payslip.
How to obtain an IRD number?
To apply for an IRD number, you will need to complete an application form.
The form you will need to complete is either form IR742 or form IR595.
Form IR742 is for non-residents, whereas, form IR595 is for residents.
You can download the application form and fill it out from the Inland Revenue website, or alternatively, you can get a physical copy of the form from an Inland Revenue office or a New Zealand Post shop.
Once you complete your application form, you can submit it by mail or in person at an Inland Revenue office or a New Zealand Post shop.
Make sure that if you’re applying in person you bring all the required documents with you.
Documents you will need to use for an IRD number include:
Your passport or birth certificate
Proof of your New Zealand address, such as a utility bill or rental agreement
A valid visa or work permit if you are not a New Zealand citizen or permanent resident
Note that it may take a few weeks to process your application and receive your IRD number. But once you receive it, make sure to keep it in a safe place as you will need to use it for tax purposes, such as filing income tax returns and applying for government benefits.
What is a Tax Code Declaration form (IR330)?
While being employed on aNew Zealand Working Holiday Visa, you must complete a Tax Code Declaration (IR300) form if:
You changed jobs (for each source of income you have, you must complete a separate IR300 form)
You need to change your tax code
You have fully repaid your student loan
You are working in a job and you may think your tax code is wrong
It’s important to note that you should give your IR330 form to your employer once fully completed to avoid paying PAYE tax at a higher rate.
Where can I obtain a Tax Code Declaration form IR330?
There are different ways you can obtain a Tax Code Declaration form IR330.
One of the easiest ways is to download the form from the Inland Revenue Website. You can find the form on the website by using the search function, or you can navigate to the “Forms and guides” section. You can download the form from there, print it, and fill it out.
Alternatively, you can pick up a form from an Inland Revenue Office and fill it out that way.
In some cases, your employer or payroll provider may provide you with a Tax Code Declaration form when you start a new job or when you need to update your tax code. They may have copies available for employees to complete.
When it comes to submitting the form, you should check with your employer or the specific organization that requested the form to determine the preferred submission method in your particular situation.
Here are some options to submit the form, however, note it will depend on your circumstances:
Submit to your employer
Submit to Inland Revenue (IRD)
Submit to your tax agent or tax intermediary
When is the New Zealand Tax Deadline?
For filing your return the tax year runs from April 1 to March 31 of the following year. So if you have been working in New Zealand during that time, you can apply for a tax refund.
Most working holidaymakers must file their tax return within their first year in New Zealand.
If you do not have a tax agent, the deadline for filing your income tax return is 7 July in New Zealand.
What happens if I don’t file on time?
Unless you have an extension or a valid reason for filing late, you will encounter late filing penalties and possibly interest charges too.
The penalty will depend on your income and can range from $50 to $250.
The IRD may also charge interest if you don’t pay your taxes on time. This means that the longer you delay filing and paying your taxes, the more you may owe due to interest.
Therefore, it’s important to file your taxes on time to avoid any penalties or interest charges.
Who can help me apply for my New Zealand tax refund?
You can file your New Zealand tax refund yourself.
However, navigating taxes can be a complex and daunting task, especially if you’re new to the Kiwi tax system.
That’s where Taxback comes in for a hassle-free tax filing experience in New Zealand!
Why Taxback?
Maximum New Zealand refund guaranteed
No complicated forms
Fast and Secure Services
Free, no-obligation estimate of your refund
24/7 Live Chat support
You can start by checking how much you could be owed with Taxback’s New Zealand tax calculator.
The post How to Claim my New Zealand Tax Back After a Working Holiday? appeared first on Welcome to the official Visa First blog!.
