Tax Residency & Employment Tax

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Moving to New Zealand?

Whether you’re a returning Kiwi or considering calling New Zealand home for the first time, there are some key tax considerations to think about before making the move.

Whatever your motivation for moving to Aotearoa, there are some key tax considerations to think about before making the move.  

New Zealand’s tax system is based on residence and source. A tax resident is liable on their worldwide income and a non-resident is taxed on New Zealand-sourced income.  Determining your tax residence is critically important to determining the basis of taxation. 

New Zealand has a comprehensive income tax regime, however, there is no capital gains tax, gift duty, death taxes or stamp duty in New Zealand.  

For help, please reach out to your local BDO Tax adviser.

Employment tax for New Zealand businesses

Looking after your workforce is a critical factor in business success. Attracting, retaining and motivating talented people can make all the difference to your business - whether they're local to New Zealand or part of a global workforce. 

At BDO, we bring a collaborative approach to your employment and expatriate tax needs. We work with you to deliver tailored solutions for your workforce and can call one of the world’s leading accounting and consulting networks to cut through the complexity of overseas tax regimes.   

We also help alleviate your compliance burden in dealing with the plethora of withholding taxes administered through the payroll system. 

Get the support you need to look after your people. Speak to a BDO adviser today.

Expatriate tax

Practical solutions for a global workforce

For many companies operating in global markets, having an international and mobile workforce is just part of doing business. However this brings added complexities for both employers and employees. Whether you're sending employees overseas, or attracting them to work in New Zealand, expatriate taxes can add issues and prompt questions that require expert advice. At BDO, we can help to minimise to the tax burden and the compliance risks for both companies and employees. 

Our expatriate tax advisory services include practical solutions to help you with:

  • Salary packaging
  • Expense reimbursement policies
  • Fringe benefits
  • Hypothetical tax calculations
  • Tax equalisation polices
  • Transitional issues
  • Tax residence
  • Tax returns
  • Verification of foreign tax credits

Our Doing Business in New Zealand Guide provides essential tax information for individuals considering coming to work or live permanently in New Zealand.

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Employment tax specialists

Looking to find out what you need to know to manage payroll tax in NZ as an employer? 


Whilst New Zealand doesn't have a separate payroll tax, it does administer a large number of withholding tax regimes through the PAYE (Pay As You Earn) system. These include ACC levies, Kiwisaver, Student loans and Working for Family Credits.


BDO's team of employment tax specialists can provide tailored advice and services across a range of wider employment tax issues. We can assist with a review of your payroll and fringe benefits to ensure you are managing your compliance. We're happy to review any part of your tax arrangements as a stand-alone exercise or as part of a wider corporate tax health check.

What about Fringe Benefit Tax?

Fringe benefits—such as medical insurance and motor vehicles—are subject to a separate ‘Fringe Benefit Tax’, but other benefits—such as accommodation—are included in the PAYE system. These quirks add complexity for companies in meeting their employer obligations.

Benefit & compensation planning

It can be challenging in a mobile workforce to attract and retain key personnel. Finding the right people to fit your needs and culture is important, but in today's ultra-competitive job market, it's also important to present a compelling case to attract employees to you.

We can assist with strategies for aligning the needs of employees and the business. We can advise on appropriate salary and compensation packages, exploring options to:

  • Offer employee share schemes or share option plans
  • Provide motor vehicles
  • Reimburse expenses
  • Reimburse accommodation or travel
  • Advise on fringe benefit tax planning.

BDO's employment tax experts can advise on the right approach for your business; or offer advice if you are negotiating a package. Contact us to find out how.

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