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Individual income tax Tāke moni whiwhi mō te takitahi

Tax-exempt overseas pensions

When you would need to include income for WfFTC and student loans

If you receive a pension from overseas that is exempt from New Zealand income tax, you may need to include it as income for Working for Families Tax Credits (WfFTC) and student loans.

If you're entitled to receive NZ Super, and your payments are reduced by the amount of overseas pension you receive, then you need to include the amount of the overseas pension as income for WfFTC and student loans.

When you don't need to include the income for WfFTC and student loans

If you pay your entire overseas pension to Work and Income and receive the full NZ Super entitlement, you don't need to tell us the amount of your overseas pension.

Example 1

Cory receives a $10,000 UK pension that is similar to NZ Super. He doesn't pay his UK pension to Work and Income. The full entitlement to NZ Super is $14,000 (example only). He receives $4,000 NZ Super less tax and keeps his $10,000 UK pension.

To ensure Cory receives the same net amount as a person on full NZ Super, Cory's UK pension is tax exempt.

Cory needs to include the $10,000 overseas pension as part of his income for WfFTC and student loans. The $4,000 he receives in NZ Super will be automatically included.


Example 2

Eva receives a Netherlands pension of $6,000 and pays it to Work and Income to offset her NZ Super entitlement. She receives the full entitlement to NZ Super of $14,000 (example only). Eva doesn't need to tell us about her Netherlands pension for WfFTC or student loans, her NZ Super is included automatically.