Tax Declaration In New Zealand Step-By-Step Guide

Stepping through the process of tax declaration in New Zealand doesn’t have to be daunting. This guide is designed to take you by the hand, leading you through each step with clarity and simplicity.

Tailored for expats, we’ll help you navigate the Kiwi tax system with ease, ensuring you meet your obligations without the usual stress.

Let’s dive in!

Where To Fill Out Your New Zealand Tax Return Online

You may have seen a portion of your income deducted for taxes if you were employed in New Zealand.

The good news? You’ll be able to recover a portion of that income tax, and this is what you are here for! This guide is designed to show you the process of filing your tax return in New Zealand so that you can follow it easily.

Automatic Tax Refunds Could Be In Your Favor

Here’s the catch:

You probably won’t have much to do in New Zealand when filing your tax return.

Since 2019, the Inland Revenue Department (IRD) automatically issued tax refunds to the majority of individuals who have worked or are currently working in New Zealand each financial year, spanning from April 1 to March 31.

Who Automatically Gets A Tax Refund In New Zealand?

Automatic Tax Refunds Are Provided If Your Income Comes From Any Of These Sources:

Employment: This includes your salary and wages.
Investments: If you earn interest or dividends below NZ$200 from bank deposits or savings.
Employee Share-Scheme Benefit: When tax is already deducted from this benefit.
Scheduler Payments: Certain scheduled payments qualify for automatic tax returns.
Income-Tested Benefits: If you receive benefits subject to income testing.
Taxable Māori Authority Distributions: Distributions from taxable Māori authorities.
New Zealand Superannuation (NZ Super): Automatic returns apply to recipients of NZ Super.

However, if your income comes from a source not mentioned above, like being self-employed, you’ll need to complete an Individual Tax Return Form (IR3).

Make Sure Your “MyIR Account” Details Are Up To Date

Since the majority of individuals working or who have worked in New Zealand receive automatic tax refunds, it’s crucial to keep your “myIR Account” on the IRD website updated.

Specifically, verify that your contact details (email address, phone number, and physical address) are current. Additionally, make sure the bank account where you want the refund to be deposited is up to date.

Filing Your Tax Return While Overseas From New Zealand

You can still complete your tax return from New Zealand even if you’re currently overseas. Simply start by updating your address on your myIR Account to your current overseas location.

You can find guidance on how to do this either on the IRD website or in “Step 8” of this guide. Subsequently, you’ll have the option to update your bank account details to an overseas account using instructions provided on the IRD website or in “Step 8” of this guide.

Ensuring A Smooth New Zealand Tax Return Process

To guarantee a seamless processing of your automatic tax return, follow these steps:

Submit all necessary IRD paperwork accurately before starting any waged job in New Zealand (refer to “What is Your New Zealand Tax Code?” and our guide on the New Zealand Work Tax System for assistance).

Establish a myIR Account before the conclusion of the tax year, which concludes on March 31.

Registering Online With IRD Made Easy

If you don’t already have a myIR Account, worry not! Just follow the straightforward step-by-step guide provided below to create your myIR Account. This will enable you to seamlessly file your New Zealand tax return online.

Creating Your myIR Account:

To initiate the online filing of your New Zealand tax return, start by registering for a myIR Account. Simply click on the “Register” button found on the IRD Homepage. If you’ve already completed this step, feel free to proceed to Step 7.

Enter Your IRD Number:

Moving on to the next stage, after clicking Next, you’ll land on the Your details page. Here, ensure you choose “Create a personal myIR account using an IRD number.

In the “Personal Details” section, select “IRD number” from the dropdown menu and input your IRD number without adding hyphens (they’ll be added automatically).

Now, proceed by entering your first name, last name, and date of birth. Your first and last name will automatically fill in the myIR web name, but feel free to make changes if you prefer.

Once you’ve filled in all the required fields, tick the “I’m not a robot” checkbox, and then click Next.

Provide Your Email Information:

Now, on this page, it’s time to finalize your myIR account details. You’ll need to:

Select a user ID and set up a password.
Input your email address.
Possibly, include a phone number along with the correct dial code.

Please note that the screenshot below is from the old IRD website, so the current interface may look different.

Accept the Terms of Use:

Next, review your details, tick the box indicating your agreement to the terms of use, and proceed.

Please be aware that the screenshot displayed below is from the previous version of the IRD website, so the current on-screen appearance may differ.

Utilize Your Activation Code:

After successfully completing the prior page, an activation code will be sent to you via email. It’s crucial to enter this code within two hours.

If, for any reason, you don’t manage to do so, click on end process and contact IRD to obtain a new activation code. Enter the received activation code and click submit.

Keep in mind that the screenshot presented below is from the previous version of the IRD website, so the current appearance on your screen may vary.

Access Inland Revenue Online Services:

Upon successful activation of your code, you’ll encounter a page similar to the one shown below. Simply click on “login.”

It’s important to note that the screenshot provided is from the previous version of the IRD website, so the current on-screen presentation might differ.

Accessing myIR:

Enter your user ID and password, established in the earlier steps, and click “login.”

You’ve successfully set up your myIR Account, making the process of filing your New Zealand tax return online much more straightforward.

To ensure your tax return is processed smoothly at the end of the financial year, the last step involves updating your bank account details.

myIR Homepage – Updating Your Address And Bank Information:

Now, it’s time to ensure your tax return reaches the correct bank account.

Follow these straightforward steps:

Click or tap on the “I want to.” tab.
Choose “Manage names and addresses” under “My details.
Once your address is up to date, you can specify a bank account from the country of your stated address for refund payments.
To input your bank account details, select “Manage refund bank accounts.

By completing these steps on the myIR homepage, you’ll guarantee that your tax return is directed to the appropriate bank account.

Other Options For Filing Your Tax Return In New Zealand

If filing your tax return online in New Zealand is not feasible for any reason, you have alternative methods:

Complete the Individual Tax Return Form (IR3) manually on the IRD website. You can also mail this form, and details are outlined in the guide on obtaining your tax refund in New Zealand.

If You Believe You’re Eligible for a Tax Return But Haven’t Received One:

Reach out to IRD directly. Within your myIR Account, click on the “I want to…” tab, then under

Communicating with IR, choose “Send a message.” Alternatively, contact them using the provided details:

+64 3 951 2020 from overseas

0800 227 774 in New Zealand

You can authorize someone to contact IRD on your behalf by submitting the completed “Elect someone to act on your behalf” form (IR 597).

Consider Using Tax back for Your Tax Return

If the entire process seems overwhelming (which is understandable, given the 68-page document), you have the option to enlist the services of a tax return company, such as Taxback.They simplify the entire process, even if you’re looking to claim a tax return from previous years.

Additionally, they offer multilingual support, a reasonable fee deducted from your tax return (no

upfront payment), and assistance even before you commence work in New Zealand.

Your Guide To Securing A New Zealand Tax Refund

Throughout your time on a working holiday, during studies, or a gap year in New Zealand, you’ve likely observed deductions from your wages under the Pay As You Earn tax scheme. Not the most pleasant discovery.

However, there’s good news! You can easily claim a tax refund in New Zealand, providing a welcome boost to your bank account. The amount you receive depends on your earnings for the tax year.

Keep in mind, that maintaining an updated “myIR Account” is crucial for securing a tax refund. Explore our guide below to understand how you can effortlessly reclaim some well-deserved funds.

Unlocking Your New Zealand Tax Refund: 3 Simple Steps:

Securing a tax refund in New Zealand has become increasingly straightforward, with many individuals receiving theirs automatically via the Inland Revenue Department (IRD).

While this automated process covers most people, it’s not universal. Additionally, those aiming to claim refunds for previous financial years may need to follow distinct procedures.

Step 1: Receive Your Tax Refund Automatically:

The most straightforward approach to obtaining a tax refund in New Zealand is to have it automatically processed by the IRD.

Ensure you’ve completed all the necessary IRD paperwork when commencing a job, and maintain an updated myIR Account with accurate bank account details.

Step 2: Handle Your Tax Refund Personally:

If you prefer a hands-on approach, you can choose the “do-it-yourself” option, available online through the IRD website. It’s advisable to complete this process promptly after the conclusion of the tax year (preferably before 7 July).

Keep in mind that if you’re seeking a refund from a couple of tax years ago or opting for a paper-based filing system, the procedure may be a bit more intricate.

Step 3: Enlist Professional Help for Your Tax Refund:

If you find obtaining a tax refund in New Zealand challenging or if the process seems complex, seeking assistance from a tax refund company, such as Taxback, is a straightforward solution.

This entails providing some necessary information, and then you can relax while awaiting your tax refund.

It’s important to note that a service fee will be deducted from your tax refund to cover the company’s assistance, but the advantage is that there’s no upfront payment required on your part.

Timing Your Tax Return: Understanding the New Zealand Tax Year

Annually, the New Zealand tax year kicks off on 1 April and concludes on 31 March. If you were employed in New Zealand during this period, you are eligible to seek a tax refund after 31 March.

To illustrate, if your employment spanned any duration between 1 April 2022 and 31 March 2023, you can initiate a tax return for the corresponding work period after 31 March 2023.

Anticipating Your Tax Refund From IRD

If you qualify for an automatic tax refund from IRD (details below), you can expect the refund to be deposited into your designated bank account by the conclusion of July after the close of the financial year.

Determining Your NZ Tax Refund Amount

The New Zealand tax refund you receive hinges on several factors:

The total amount you earned.
The duration of your employment in New Zealand.
The nature of your work.
The extent of tax withheld from your wages.

Calculate the potential refund you’re entitled to by establishing a “myIR Account” ( How to File a Tax Return in New Zealand), or for a quick estimate, utilize the widget below.

Eligibility For Automatic Tax Refund In New Zealand

In New Zealand, certain individuals are eligible for automatic tax refunds based on the nature of their income. If your earnings fall under any of the following categories, you are likely to receive an automatic tax refund:

Employment: If you receive income through salary and wages.
Investments: Including interest or dividends under NZ$200 from bank deposits or savings.
Employee Share-Scheme Benefit: In cases where tax has already been deducted.
Schedular Payments: Pertaining to specific types of scheduled payments.
Income-Tested Benefits: For those receiving benefits subject to income testing.
Taxable Māori Authority Distributions: If you’ve received distributions from a taxable Māori authority.
New Zealand Superannuation (NZ Super): Applicable for recipients of NZ Super.

It’s crucial to note that if your income source doesn’t align with the listed categories, especially if you are self-employed, you will need to complete an Individual Tax Return Form (IR3) to ensure your tax obligations are appropriately addressed.

Ensuring A Seamless Process For Your Automatic NZ Tax Refund

To guarantee a hassle-free receipt of your automatic tax refund in New Zealand, adhere to the following steps:

Submit Correct IRD Paperwork: Ensure the completion of accurate IRD paperwork before commencing each waged job in New Zealand.

Refer to resources like “What is Your New Zealand Tax Code?” and our comprehensive guide to the New Zealand Work Tax System for guidance.

Establish a myIR Account Early: Proactively set up a myIR Account well in advance of the tax year’s conclusion, which falls on 31 March. This online account is instrumental in managing your tax-related affairs.

Keep Information Updated: Maintain the accuracy of your contact and bank account details within your myIR Account.

Timely updates guarantee that the Inland Revenue Department has the correct information for processing and depositing your automatic tax refund efficiently.

Benefits Of Automatic Tax Refund In New Zealand

Source: Unsplash

✅Effortless Process: The automatic tax refund system streamlines the entire process, minimising the need for individuals to navigate complex paperwork or extensive calculations.

✅Time-Saving: By automating the tax refund procedure, individuals save valuable time that would otherwise be spent on manual filing and verification.

✅ Timely Refunds: Eligible individuals can expect to receive their tax refunds promptly. The system is designed to disburse funds efficiently, providing financial relief when needed.

✅Reduced Administrative Burden: The automated system reduces the administrative burden on taxpayers, sparing them from the intricacies of manually handling tax-related documentation.

✅ Accurate Deductions: With automated processes, there is a higher likelihood of accurate deductions, ensuring that individuals receive the appropriate refund amount based on their specific financial circumstances.

✅ Enhanced Compliance: Automation helps enhance compliance as it reduces the likelihood of errors in tax reporting, leading to a smoother and more transparent taxation system.

✅ Inclusive Approach: The automatic tax refund system is inclusive, covering a range of income sources, from employment and investments to various benefits, making it accessible to a broad spectrum of individuals.

✅ Simplified for Various Income Streams: Whether it’s salary and wages, investments, or other income sources, the system accommodates a variety of financial scenarios, making it versatile and accommodating.

In essence, the automatic tax refund system in New Zealand offers simplicity, efficiency, and timely financial benefits to eligible individuals, contributing to a more user-friendly and accessible taxation process.

Conclusion

And that’s your journey through the New Zealand tax declaration process – simple and stress-free. With this guide, you’re now equipped to tackle your tax obligations with confidence and precision.

Remember, understanding and correctly handling your taxes is a crucial part of your seamless transition into life in New Zealand.

Happy settling!

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