When an employee is based overseas you might pay for accommodation on their behalf or pay an accommodation allowance.
In some situations, the taxable value of overseas accommodation is greater than the taxable value of similar New Zealand accommodation. In these situations, you can use the New Zealand price to calculate any payable tax.
To work out the value of similar accommodation you should consider market values in the area the employee would live if they were working for you in New Zealand. When an employee works at multiple locations, the average or median market rental value for the whole of New Zealand can be used.
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