[quote=“Traveller”]Truant, it is to do with double taxation agreements, which NZ and Taiwan do not have, but NZ does with most of the rest of the world, hence it is little known.
I am not a Kiwi, but my work colleague is and it is him that told me about this. As a NZ citizen or Resident, then any money transferred from Taiwan is subject to income tax (I think).
Will ask him more when he returns from his Xmas break.[/quote]
I understand the vague concept of the double tax agreements, and my understanding was they were set up to enable full tax to be collected from tax residents who earn overseas. i.e. if I worked in Sg for 6 months, then returned to NZ, even though I’d paid say 8% on my income in Sg, the NZ IRD would then add on another 16%, assuming you declared that income in your tax return.
My understanding after talking with another kiwi, is that this has got nothing to do with sending funds home. If a kiwi lives overseas for more than 320(?) days in a fiscal year (and other requirements), they can change their status with the NZ IRD as non-residents for tax purposes. Then when it comes time to complete a tax return, the person has to declare NZ SOURCED income only, which is then assessed for tax. There is no requirement for a non-resident to declare non NZ sourced income, and there is no mention that it is illegal to send money home. (Besides, a lump sum transfer from one account to another does not equal “income”)
The only fact that would alter this, is if the person was NOT in fact a non-resident for tax purposes (i.e. the NZ IRD considers you to be a tax resident of NZ), in which case all overseas sourced income would be taxed.
I have a bank account in Sg anyway, so I can use that account as an intermediate account to send money home if reqd, but surely when you fill out a NZ Tax return, your current residential address will be the give away, rather than which country the funds were transferred from?
Are there other kiwis that would like to comment on this and also how Taiwan-NZ’s non tax agreement status affects them?