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!
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:
So, curious about how much you can claim? Use the Taxback New Zealand tax refund calculator to see how much you are owed!
In short, you will be due a New Zealand tax refund if:
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!
In order to claim your tax refund, you must gather the required documents and file a New Zealand tax return first.
You have two options:
You will need a summary of your earnings or final payslip and a copy of your ID.
The summary of earnings 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.
While on a work and 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.
| Yearly taxable income | Tax Rate |
|---|---|
| Up to $15,600 | 10.5% |
| From $15,600 – $53,500 | 17.5% |
| From $53,500 – $78,100 | 30% |
| $78,101 and over | 33% |
| No-notification (no IRD number) | 45% |
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.
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:
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.
While being employed on aNew Zealand Working Holiday Visa, you must complete a Tax Code Declaration (IR300) form if:
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.
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:
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.
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.
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!
You can start by checking how much you could be owed with Taxback’s New Zealand tax calculator.
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