Common sense of tax and tax rate necessary for immigrating to New Zealand

New Zealand has one of the most effective tax systems in the world. As a New Zealand resident, no matter where your income comes from, you must pay income tax to the New Zealand authorities. As a tax resident of New Zealand, all income, including personal wages, investment profits, allowances and overseas income, must be taxed. The definition of tax residents in tax law is different from that of ordinary citizens. Having citizenship and residency in New Zealand does not mean becoming a tax resident. On the contrary, even if you are not a New Zealand citizen, you may be classified as a tax resident.

tax system

Living and doing business in New Zealand need to pay taxes to the New Zealand Inland Revenue Department. Generally speaking, all business activists must have an IRD number; Fill in various tax forms to the tax bureau every year and pay taxes by stages; Write all business records and transaction documents in English, so as to fill in tax forms and calculate the amount of tax payment or refund. The main taxes involved in doing business in New Zealand are income tax and goods and services tax, which contribute more than 90% of New Zealand's tax revenue every year.

1. Income tax is the most important tax in New Zealand. 65% of government revenue comes from income tax every year. The basic legal basis for collection is the income tax law of 1994 and the income tax law of 1994.

(1) Taxpayer

New Zealand has one of the most efficient tax systems in the world. As a New Zealand resident, no matter where your income comes from, you have to pay income tax to the New Zealand government. Even if you are not a New Zealand citizen, you may be defined as a tax resident according to the tax law. All income, including personal wages and salaries, investment profits, allowances and overseas income, must be taxed. Generally speaking, when judging whether New Zealand is a tax resident, the following factors should be considered:

1. Individuals have lived in New Zealand for more than 183 days in any continuous 12 months, or

2. Working in a New Zealand government department overseas, or

3. One of the following situations exists in New Zealand:

(1) often live in New Zealand by stages;

(2) owning, leasing or accepting property in New Zealand;

(3) social relations (mainly settlement, children's education, belonging to New Zealand groups);

(4) Economic relationship (account, credit card, life insurance, investment or pension in New Zealand);

(5) Employment (having a job in New Zealand);

(6) Intention to live in New Zealand;

(7) Receive welfare, pension and other remuneration in New Zealand.

Immigrants who live in New Zealand for no more than 183 days each year do not need to pay taxes in New Zealand.

(2) Taxable income

1. All work income (full-time, part-time, temporary)

2. Bonus bonus

3. Government subsidies and benefits

4. Various rights and interests

5. Industrial and commercial income

6. Commercial income from the sale of land and buildings.

7. Investment income of stocks and bonds.

8. Sales revenue of books, movies, copyrights, etc.

(3) Expenses that can be deducted from business income include: expenses that can be deducted must be directly related to income, and personal expenses are not allowed to be deducted.

1. Car expenses, expenses for employees and self-employed people to use their own cars for work.

Employers can use the kilometer table of the Inland Revenue Department to calculate the deductible fare, and self-employed people can deduct up to 5,000 kilometers per year.

2. Travel expenses

Need to provide reasons, dates, routes, transportation costs, accommodation, and the time spent on commercial and non-commercial activities.

3. The company's land rent or construction depreciation, local taxes, electricity and telephone charges.

4. Hospitality

5. Entertainment expenses of employees or customers can also be used as deductible expenses. Food and beverage expenses can be fully deducted under the following circumstances:

(1) Business trip (2) Public promotion meeting (3) Partial meeting. In addition, some entertainment expenses can be deducted by 50%.

6. Expenditure on materials or goods, including stationery and general office supplies;

7. Employee's salary

8. Resident withholding tax and extra welfare tax (see the second part of this article for details);

9 welfare donations approved by the tax bureau.

(4) Tax rate

New Zealand income tax does not distinguish between ownership and domestic and foreign investment, and the current tax rate is:

Annual income tax rate of self-employed and partners, corporate tax rate

Less than 38,000 yuan 19.5% 33%

3800 1 to 60000 yuan 33% 33%

More than 6000 1 yuan 39% 33%

Undeclared

The tax rates of the above-mentioned individual operators and partners belong to the excessive progressive tax rates. For example, the income tax payable for an individual with an annual income of 70,000 yuan is:

38000? 19.5%+22000? 33%+ 10000? 39%= 18570

(5) Mode of payment

The tax year usually begins on April 1 day of each year and ends on March 3 1 day of the following year. If different filing dates are needed, you can apply to the tax bureau in writing and explain the reasons, and get approval. Businessmen usually have to pay? Estimated tax? Income tax is paid in three installments every year. At the end of each fiscal year, business operators are required to fill in tax returns, and according to the difference between paid and unpaid income tax, they are required to refund more and make up less. Tax authorities generally send tax returns and pamphlets before the end of March each year to declare the total income and tax payment in the previous tax year. Relevant forms must be sent to the tax bureau before June 7 (for wage earners) or July 7 (for other personnel), and all unpaid taxes must be paid before February 7 of the following year.

(vi) Double taxation.

If a taxpayer is a resident of New Zealand and other countries at the same time, and both countries tax the income of residents from all over the world, then the taxpayer may be subject to double taxation. New Zealand has signed agreements with some countries to avoid double taxation, which makes it clear which country has the priority and sole taxation right. If overseas income has been taxed in that country, it can be deducted when reporting in New Zealand, and the amount deducted shall not exceed the tax amount in New Zealand. If you want to apply for deduction, you must show the tax payment certificate of other countries.

China and New Zealand signed an Avoidance of Double Taxation Agreement on 1986.

Second, other taxes.

In addition to income tax, some taxes in New Zealand come from the income tax system, such as resident withholding tax and fringe benefits tax, while others are independent of the income tax system, such as goods and services tax and investment income tax.

(1) Resident withholding tax (? RWT？ )

Resident withholding tax is a tax deduction for interest and dividends paid to New Zealand residents. This part of the tax deduction can be used as a deduction for calculating income tax.

Usually, banks or other similar institutions will deduct interest from your account or investment? Withholding tax? . Can I pay the paid amount when I declare in the last tax year? Withholding tax? Offset investment income. Can the company deduct from the dividends distributed to shareholders? Withholding tax? . If the company distributes the profits after tax to shareholders in the form of dividends, and shareholders can also ask for deduction when filing tax returns, then the company can also benefit other shareholders by paying taxes.

The withholding tax rate for individual residents is generally 19.5%, and the corporate tax rate is 33%. Non-corporate taxpayers and trust companies can also choose a higher tax rate of 33% or 39%. If the taxpayer's personal annual income exceeds S $38,000 and the resident withholding tax rate is 65,438+09.5%, then the year-end tax payment (33%-65,438+09.5% = 65,438+03.5%, that is, the interest and dividend income is taxed at S $65,438+0. )

(2) Additional welfare tax (hereinafter referred to as? FBT？ )

All non-cash benefits provided to employees are subject to employee benefit tax, which is paid by the employer. Providing benefits is equivalent to providing goods and services, so employers have to pay GST for the extra benefits provided to employees. The value of extra benefits includes goods and services tax, so employers can claim to deduct the goods and services tax on the benefits. Goods and services tax paid for fringe benefits can be used as a deduction for income tax calculation. Additional welfare tax is generally paid quarterly. Calculation of fringe benefits tax: The employer can choose to pay 49% or 64% fringe benefits from (1) 1 to the third fiscal quarter, and the mixed tax rate is applicable to the last quarter; (2) Pay 64% of the attachment benefits from 1 to the third fiscal quarter, and apply 64% or mixed tax rate in the last quarter. (3) Goods and Services Tax Goods and Services Tax (GST) is an indirect value-added tax in New Zealand, which is levied on goods, services and imported goods provided by New Zealand. The legal basis for taxation is the Goods and Services Tax Law of 1985.

The object of goods and services tax is not commercial profit or turnover, but consumption, which is ultimately paid by consumers or end users. The current tax rate is 12.5%. For example, retailers need to pay 65,438+02.5% of the commodity price as GST when buying commodities in wholesale, and 65,438+02.5% of the selling price as final GST when retailing. At the same time, retailers can apply to the tax bureau for refund of GST paid at wholesale.

People whose annual turnover exceeds S $40,000 (excluding GST) must apply for registration and pay GST. People with an annual turnover of less than S $40,000 can choose not to register for GST. After registration, operators must fill in the goods and services tax form on time (every one, two or six months), and collect and pay the goods and services tax in the form of overpayment and underpayment. Unregistered business operators cannot collect or refund the paid goods and services tax.

Other taxes independent of income tax include gift tax, cheque tax and domestic commodity tax on tobacco, alcohol and petroleum products. These taxes have little impact, so I won't go into details.

Third, the tax system.

In New Zealand, taxation is carried out in strict accordance with the law, and the tax law is almost the most complicated legal department in New Zealand, with major and minor amendments every year.

The tax bureau manages the tax system, and its powers and responsibilities are determined by the tax administration law. The Law on the Administration of Tax Collection requires the Director of Taxation, as the person in charge of the tax bureau, to exercise his functions and powers to ensure that taxes are collected to the maximum extent within the scope of the law. Members of the tax bureau have the right to formulate rules and evaluate taxable property. The Tax Administration Law authorizes the governor to issue instructions to the tax commissioner on the management of the national tax law, but the governor cannot directly intervene in tax cases and explain the tax law.

From June, 5438 to October, 2000 10, the government formed a five-member group to consider whether New Zealand's tax system is in the best interests of the government. On May 38, 2006+10, the Committee submitted its final report, believing that the current tax system is reasonable and the tax reform has achieved positive results in the past 20 years.

Personal income tax calculation: New Zealand adopts a relatively simple personal income tax calculation method. After your confirmation, your employer will directly calculate the taxable part and taxable amount of personal income through financial software and pay it to the New Zealand Taxation Bureau, also known as IRD. As an employee of the company, whether full-time or part-time, you don't need to think about how much tax you should pay and where to pay it, because your salary is already a part of after-tax when it is paid.

The English name of personal income tax is Tax on year Income.

New Zealand personal income tax calculation method

New Zealand's personal income tax is calculated according to the amount of pre-tax income. The period from April 1 of each year to March 3 1 of the following year is regarded as a complete tax cycle, and all your income during the tax cycle is called? Taxable part? , the calculation method is as follows:

$ 0-$ 14000, and the tax rate is 10.5%.

$14,001-$48,000, and the tax rate is 17.5%.

48,0065438 USD+0-70,000 USD, and the tax rate is 30%.

Above 70,001USD, the tax rate is 33%.

So, if your annual salary before tax is 65,438+10,000, then the calculation method is14,000 *10.5%+($48,000-14,000) *17.5%+($ in this way, you can