If you're a New Zealand tax resident, you must pay tax on your worldwide taxable income. If you have investments or savings accounts in other countries, you'll need to pay income tax on the interest and dividends from these investments. Different types of investment have different rules and tax rates applied.
Which country do I pay tax to?
If you're a New Zealand tax resident, you will always pay tax to New Zealand. However, you may also need to pay tax to the country where your investment is located.
To prevent double taxation, you may receive a tax credit in one country for tax paid in another. For more information, you will need to check if New Zealand has a double tax agreement (DTA) with this country and what it says.
If you have an investment in a country that doesn't have a DTA with New Zealand, we recommend that you talk to a tax agent.
Double tax agreements (DTAs)
Credit for tax paid overseas
Types of investment
If you have a savings account earning interest in a foreign country, you will need to pay non-resident withholding tax (NRWT) on the interest you earn from this account. The rate of tax you pay will depend on the tax treaty between New Zealand and the other country.
You will need to declare this income and its country of origin on your end of year Individual tax return - IR3. If you're a transitional tax resident with a temporary tax exemption, you do not need to declare this income.
Term deposits and bonds
Shares in a foreign company
Foreign retirement savings schemes (overseas pensions)
Overseas rental properties
Tax on your overseas rental property