If you have income from overseas sources, it can be tricky to work out your tax position.

#1 Declare rental income from overseas properties. You can claim deductions for rental-related expenses, and you may also be able to claim a credit for tax paid in the other country on that income. 

#2 Do you receive income from an overseas trust? The New Zealand tax treatment depends on where the settlor of the trust lives. As a trust does not have a legal personality, there is no concept of residency for trusts. However, a trust is recognised as a taxpayer, so New Zealand generally verifies the residency of the trustee to determine which income of the trust is subject to New Zealand tax. 

#3 If you own shares in a foreign company, you must pay tax in New Zealand on foreign share dividends unless:

• You are a transitional resident, or
• The shares are subject to foreign investment fund or controlled foreign company rules.

Dividends paid by overseas companies to transitional residents or non-New Zealand tax residents are not taxable in New Zealand for the transitional period.

#4 Having offshore bank accounts and credit or debit cards may trigger New Zealand tax obligations. Even if foreign withholding tax has been deducted on foreign income, it doesn’t necessarily mean the income is no longer taxable in New Zealand.

#5 Do you have interests in a foreign superannuation scheme? If so, any payments received from such schemes (including transfers into KiwiSaver) will need to be considered for New Zealand tax. As with other tax rules on foreign investments, these rules are complex. 

With all of the above, it's a good idea to get in touch with us or your Financial Advisor to ensure the correct tax treatment is applied.