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Commissioner's Interpretation Statement on tax residence

Tax residence

Date of issue: 20 September 2016

Ruling Number: IS 16/03

This Interpretation Statement updates and replaces IS 14/01 – Tax Residence (Tax Information Bulletin Vol 26, No 3, April 2014), as a result of the Court of Appeal decision in CIR v Diamond [2015] NZCA 613. It sets out the Commissioner’s view on the tax residence rules for individuals, companies and trusts. The updated part deals with one of the tax residence tests for individuals – the “permanent place of abode” test in s YD 1(2). The tax residence rules determine whether a person is liable for tax on worldwide income or only on New Zealand-sourced income. New Zealand residents are assessable on worldwide income, and non-residents are assessable only on New Zealand-sourced income.

If you have reached a view on your tax residence under the approach in IS 14/01 and are unsure how IS 16/03 might affect you, the Commissioner's operational position will help (see Operational positions in the left hand menu).

IS 16/03 - PDF format (1.2mb | 84 pages)