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Foreign income, overseas assets and investments

Do you have foreign-sourced income or own offshore assets or investments? You could be liable for tax in New Zealand.

NZ tax residents pay income on their WORLDWIDE income. Your worldwide income can include foreign income even if you have not repatriated it to New Zealand or even if you have already paid tax on it in the other country or the income is exempt in the other country.

Examples of foreign income / foreign assets:

  • Beneficiary distribution from an offshore trust
  • Offshore inheritance
  • Overseas pensions
  • Shares / part-ownership of foreign companies
  • Offshore financial arrangements, such as loans or bonds
  • Foreign currency bank accounts
  • Overseas rental properties

New Zealand has a transitional arrangement scheme which means that new migrants or returning New Zealanders who have been absent for 10 years or more, can qualify for a four-year exemption on paying tax in NZ on most of their foreign-sourced income.

Each type of income, asset or investment has its own set of tax compliance rules, and each country has its own taxation arrangements with New Zealand whether under a Double Taxation Treaty or not. The situation is complex.

If you think that you could be affected, don’t hesitate to get in touch.

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