Income tax Dates
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MAR 31Final date for ratio option provisional tax applications.
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APR 7End-of-year income tax and Working for Families bills are due if you have an extension of time to file your income tax return.
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MAY 7Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options.
Foreign superannuation are funds created outside of New Zealand to provide retirement benefits to individuals.
Periodic payments and lump sum withdrawals or transfers
Your foreign superannuation transactions will be taxed differently depending on:
- your type of transaction
- If an exemption applies
- if a double tax agreement applies.
| Type of transaction | How you're taxed |
|---|---|
|
Regular payments from pensions or annuities |
You'll need to pay tax on these amounts when you file or approve your tax return. |
|
Lump sum withdrawals (and the 4-year exemption has expired). |
If you have a superannuation interest that you acquired when you were a non-resident, you can use either the:
|
|
Lump sum transfers to New Zealand or Australia (and the 4-year exemption has expired. |
You can use either the:
The outcome of the calculation is called your assessable withdrawal amount. This is the taxable portion of the transfer. If your New Zealand superannuation scheme offers the 'scheme pays' option, you can ask them to pay 28% tax on the assessable withdrawal amount to us on your behalf out of the transferred funds. |
|
Lump sum withdrawals or transfers from Australian superannuation |
You will not be taxed on withdrawals or transfers from an Australian superannuation. |
Double tax agreements
Keep in mind that a double tax agreement (DTA) may be in place between New Zealand and the country or territory where you have foreign superannuation. You, or a tax professional, will need to check because DTAs can affect how you're taxed on your foreign superannuation transactions.
Tax on lump sums begins after 4 years
A 4-year tax exemption can apply to lump sums. You will not have to pay tax in relation to transfers and withdrawals made within the exemption period.
The exemption start date is the earlier of:
- the first day you were here for more than 183 days in total in any 12-month period. This calculation back dates the 183-day rule – so use day 1 of the 183 days
- the day you establish a permanent place of abode here.
The exemption period end date is the earlier of:
- 4 years after the end of the month in which you were here for more than 183 days in total. Unlike the start date, this does not get backdated to the first day, so use day 184
- 4 years after the end of the month you established a permanent place of abode here
This 4-year tax exemption applies only to foreign superannuation. This time frame is the same as another one which exempts most passive foreign income (including regular pension payments) for most people when they become New Zealand tax residents
International tax for individuals
Schedule method
The schedule method is the default option when calculating lump sum amounts of your foreign superannuation.
Under this method you pay tax on a percentage of the lump sum. The percentage varies depending on how long you've been a New Zealand tax resident.
Formula method
The formula method is complex. To use it, we recommend getting advice from a tax professional.
Under this method, you are taxed on the actual gains of your foreign superannuation interest.