If you work in New Zealand and receive income in the form of wages, you are subject to income tax each time your wages is transferred to you. The tax rate depends on your salary level. At the end of a tax year, which here does not coincide with the calendar year (starts on April 1 and ends on March 31 of the next year), you can refund part of the amount of paid taxes. Below are the details and step-by-step instructions for a tax refund in New Zealand.
In what cases is it possible to make a tax refund
So, you will receive a tax refund if you lived and worked in New Zealand for at least 6 months in the last tax year, and also if one or more of the following points apply to you:
- Worked a partial tax year
- Have more than one job
- Earned less than $ 48,000 NZD
Calculator for determining the amount of annual income
If you have worked and received a salary above $ 48,000 NZD, it is still worth checking if you are entitled to a refund. For this, the IRD website has a tax calculator tool.
At the same time, if you have not received a tax deduction earlier, working in New Zealand for several years, then you can send a request and receive a tax refund for the last 5 years of your stay in New Zealand.
Online registration in the myIR tax system
First of all, in order to receive any personal information and make any online applications, you need to go through a simple registration in the myIR system.
- On the IRD website, go to the registration section
2. Create an account by filling out the form on the website and indicating your IRD number and personal information.
3. Activate your account. This can be done by entering the code that came to the phone number indicated during the registration or by calling the phones: 0800 227 770, (+64 4 890 2120).
After that, you will get access to your Personal Account, where you can see information about your account including information about your earnings and taxes paid.
Online Tax Refund
You can find out the amount of taxes that must be paid starting from April of the next tax year, using the tax calculator, indicating the total amount of earnings for the tax year you are interested in (after its end). This will give you an idea of the approximate amount of taxes you should pay on the income received for the specified tax period. This information is provided for your information only and is not sent to the IRD. Now you can compare the amount indicated with the amount actually paid.
You can find out the amount of taxes that were actually paid after registering with myIR in your Personal Account – in the “More Details” section, the “Earnings Information” tab.
Receiving a tax deduction to a bank account
If you find that the amount of tax you paid is higher than the amount that must be paid according to the tax calculator, it is worth starting the refund procedure. To do this, in the middle of May, go from the myIR Personal Account to the Request PTS page. By filling out the form, you will receive a calculation of your taxes in accordance with your income. But, unlike the “tax calculator”, this information will be accurate, as it takes into account all aspects of taxation and will be transferred to the IRD. After that, from about the middle of July, you will also need to make a PTS confirmation. After that, you will receive a refund to your bank account within 5 business days.
It is interesting that, according to the information on the IRD website, in the opposite situation, when the tax calculator shows the underpayment of tax, you do not need to ask for PTS, since in this case you may be charged with the unpaid amount of tax. In other words, if you are not ready to pay such an invoice at the moment, do not take any further action.
Reimbursement of the costs of employment for individual entrepreneurs
If you are self-employed, at the end of the tax year you must complete IR3 Form instead of requesting a PTS. This form will allow you to claim reimbursement of expenses that were associated with the employment. For example, you can add expenses for the purchase and maintenance of tools and equipment, rent of real estate, fuel, etc. You must have proof of these costs in the form of receipts, which may be asked to provide at any time.
Read further: What is IRD and how to get it in New Zealand
