NZ'ers in PNG and tax?
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NZ'ers in PNG and tax?
I'm looking at working in PNG next year and just trying to get my head around the tax setup between NZ and PNG. I will be employed and pay tax in PNG.
My problem is that I will be commuting and own a house in NZ so will be tax resident there.
I understand the OZIRD have a reciprocol tax arrangement with PNG where there is a balancing act carried out, which due to PNG's high tax rate always ends up with nil tax to pay.
Does anyone know if there is a similar setup with NZIRD?
Thanks in advance.
My problem is that I will be commuting and own a house in NZ so will be tax resident there.
I understand the OZIRD have a reciprocol tax arrangement with PNG where there is a balancing act carried out, which due to PNG's high tax rate always ends up with nil tax to pay.
Does anyone know if there is a similar setup with NZIRD?
Thanks in advance.
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Under NZ law, the IRD can tax your worldwide income. Unless there is a DTA with the other country. PNG does not appear to be on that list. Get yourself assessed as a non tax resident of NZ otherwise you could end up paying 2 lots of tax. Spend some time on the IRD website. Commuting is no worries, you're allowed up to 183 days in NZ each 12 months, just give them your permanent address as PNG. I own properties and have bank accounts and insurance policies etc in NZ (ie what I thought would be an enduring relationship) declared it all and was still declared a non resident for tax.
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Find out more
The Non-resident Contractors Team can help you with information about DTAs.
You can contact them at:
Non-resident Contractors Team
Inland Revenue
PO Box 2198
Wellington 6140
New Zealand
Phone 64 4 890 3056
Fax 64 4 890 4510
Email [email protected]
PM me for more if you want
Find out more
The Non-resident Contractors Team can help you with information about DTAs.
You can contact them at:
Non-resident Contractors Team
Inland Revenue
PO Box 2198
Wellington 6140
New Zealand
Phone 64 4 890 3056
Fax 64 4 890 4510
Email [email protected]
Join Date: Dec 2010
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Png-NZ tax issues
The 183 rule does not apply till the second year onwards. The first year a non-resident is subject to a 325 day rule. Day counting means that any time spent on NZ soil even for only 5 minutes counts as a day.
I don't think however that there is a double take situation even for earnings in non-treaty countries. I believe that the IRD will allow a credit for tax paid and only impose a 'gap' tax on any amounts earned and taxed at a lesser percentage than NZ rates.I don't think that therefore any tax will accrue in NZ as PNG's rates are higher than NZ.
So maybe your residency is not important as it would be difficult to establish non-residency in NZ with what you are proposing.
If you receive any tax free allowances or non-taxed FBT benefits in PNG that would be taxable in NZ that may be a loss to you
I don't think however that there is a double take situation even for earnings in non-treaty countries. I believe that the IRD will allow a credit for tax paid and only impose a 'gap' tax on any amounts earned and taxed at a lesser percentage than NZ rates.I don't think that therefore any tax will accrue in NZ as PNG's rates are higher than NZ.
So maybe your residency is not important as it would be difficult to establish non-residency in NZ with what you are proposing.
If you receive any tax free allowances or non-taxed FBT benefits in PNG that would be taxable in NZ that may be a loss to you
