Sam leaves Christchurch to go backpacking around Asia for 5 months. During this time, Sam runs a little low on funds and decides to take an opportunity working in a bar for a few weeks. Does Sam need to declare his earnings in his next tax return?
Mary leaves Wellington on the 1/08/2012 to go on her “OE” in London. She has a 2 year visa and is lucky to obtain a job straight away. Mary returns back to Wellington on 30/01/2014. Does Mary need to include her overseas earnings in her NZ tax return?
Chris is an Australian citizen and arrives in New Zealand in June 2013 to start his new job working on the ski fields. Does Chris need to include his earnings from Australia in his New Zealand tax return?
Laura has ticked in the "Show extra" tab, that she was overseas for the 2014 tax year and has indicated travel dates of 1st May 2013 to the 25th December 2013. She has no SL debt. What would you do next?
- Set to Traveller status
- Set to IR3 to File
- Set to Overseas Income
Match it up! Choose the best fit
A NZ Tax Resident is someone who isin New Zealand for more than 183 days in any 12 month period
You are not a NZ Tax Resident if you have been outof New Zealand for 325 days in any 12-month period and you don't have any enduring relationship with New Zealand.
Double tax agreements (DTAs) have been negotiated between New Zealandand 39 countries to decide which country has the first or sole right to tax specific types of income.
Once you confirmed travel dates from the customeryou need to calculate the length of time the client was out of the country.
Joe calls the office and you can see that he is on the "IR3 Overseas Income" status and has indicated that he was overseas from 1st August 2014 until 1st March 2015. Joe advises he did not work overseas, he was travelling Europe. What should you do next?
- Set to IR3 to File with a 1 day NZTR Bring up date
- Check Joe does not have Student Loan or receive FAM, then Make PTS
- Set to IR3 overseas income with a 1 day NZTR Bring up date
Choose the missing word that fits best!
Once you have determined that the customer was overseas for less than 325 days, you must first ask if they where they were working in.
If so, then great! Get them to send in their (or equivalent) from the countries they were working in, so that we can proceed.
If they have not filed a tax return in the country that they were working in, you can then ask them to provide a copy of their from the countries tax office (i.e. ATO, Revenue Canada, HMRC etc) they were working in, for example in Australia, this is called a "Group Certificate"
If they cannot provide a copy of their summary of earnings, then we are able to accept in order to proceed. Please ensure its the customers final payslip and ask them to send in payslips from all sources if they had more than one job.
As a last resort and if the customer cannot provide any of the above, they can write a letter confirming total earnings (not tax) they believe that they earned. Please note that they MUST their overseas income earnings.
Jack has called the office and advised that he had left NZ permanently on the 1st January 2015. Choose the best status by dragging and dropping your answer to the correct fields:
- IR3 to File
- Make PTS
Tony has called the office to advise he was not working while overseas. Using the above references, what status should you set to?
- IR3 Other - OBB
- Make PTS
- IR3 to File