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If you earn income in New Zealand, you will need an IRD number (tax number). If you do not have an IRD number, you will be taxed at the highest possible rate. The GST is a flat tax of 15%. It is added to the price of most goods and services when you buy them, including some that you buy from foreign suppliers. In addition, countries have social security contributions. These taxes, which are usually flat-rate, are levied in addition to a country`s general personal income tax on wage income. However, revenue from these taxes is usually used specifically for social security programs such as unemployment insurance, state retirement programs, and health insurance. Paid by the employer, up to a rate of 49.25% for employer-supplied cars, low-interest loans, health insurance premiums, foreign pension contributions, etc. FBT is tax deductible, so the employer`s costs actually correspond to the cash remuneration. You may receive a refund or will have to pay taxes at the end of the tax year if you were taxed at the wrong rate during the year. It is important to use the correct tax number. Rates are based on your total income for the tax year.

Your income could include the following: On October 1, 2015, a real estate speculation test was introduced, which indicates certain purchases and sales of real estate as income (and is therefore taxed at the seller`s tax rate). The test does not apply to the family home, estate or property sold as part of a relational arrangement. The main purpose of the test is to raise funds from real estate speculation – originally, homes bought and sold within two years were taxable. [16] In 2018, the two-year threshold was raised to five years. Proceeds from real estate purchased and sold within five years are treated as income for tax purposes, subject to limits for family homes, etc.[17] Rates apply for the tax year from April 1, 2017 to March 31, 2018 and are based on Tax Code M (primary income excluding student loans) and exclude the ACC levy. The employee tax rate (including GST) for the period April 1, 2017 to March 31, 2018 is 1.39% ($1.39 per $100). [7] [8] Most goods or services sold in New Zealand are subject to a GST of 15%. The main exceptions are financial services (e.g. B, banks and life insurance) and the export of goods and services abroad. However, many countries do not properly define their tax base. In order to minimise distortions, total final consumption should be taxed at the same standard rate.

However, countries often exempt too many goods and services from taxation or tax them at reduced rates, forcing them to levy higher standard rates to generate sufficient revenue. Some countries also do not adequately exempt business inputs. For example, U.S. states often levy sales taxes on machinery and equipment. You can get a tailor-made tax rate for the income you come from: companies and businesses are taxed at a flat rate of 28%. In addition, banks and other financial institutions deduct the corresponding amount of income tax on interest and dividends when they are generated. Depending on the status of the lender, this withholding tax is called resident withholding tax[11] (RWT) or non-resident withholding tax[12] (NRWT). NRWT is at a higher rate. Income tax rates are the percentages of taxes you have to pay.

New Zealand distinguishes between “property taxes” and “property taxes”. The traditional concept of property tax may choose [clarification required] to apply the same rate to both the improvement value and the value of the land. A pure property tax exempts improvement values from the overall tax and only taxes the value of the land. A progressive, double or split property tax applies a lower rate than the improvement values. The term “property tax assessment” is used to represent both its pure and partial form. [30] Conceptually, a property tax is an approximation of income tax – rightly or wrongly, assuming that a certain level of land ownership indicates some ability to pay taxes on a regular basis. In contrast, an LVT applies to the country itself – taking into account its scarcity, immobility and centrality in human action. [31] In an increasingly globalized economy, companies often expand beyond the borders of their home countries to reach customers around the world. As a result, countries need to define rules that determine how or if foreign-generated corporate income is taxed. International tax rules deal with the systems and regulations that countries apply to these business activities.

Employers are required to pay a benefits tax (FBT) on benefits granted to employees in addition to their salary or salary (e.g. . . .