Income you get from overseas, including your diplomatic salary, is exempt from tax in New Zealand if you're:
- a diplomat
- a non-resident taxpayer employed at an embassy, high commission or consulate in New Zealand
- an officially recognised family member of a diplomatic or consular employee.
You need to pay tax in New Zealand on any income you get from New Zealand sources. This includes income from:
- New Zealand bank accounts or other investments
- private local employment
- a business you own.
Locally employed staff are not covered by the exemption
Locally employed staff must pay their own tax on income from employment as IR56 taxpayers.
They can register using form IR359. More information is provided in the handbook IR356.