New Zealand has double tax agreements (DTAs) with several countries. DTAs decide which country you pay tax to if you’re a tax resident in one country but earn income in another.
How do DTAs help me?
DTAs help prevent you being taxed twice on the same income.
A DTA decides if:
- only New Zealand has the right to tax you
- only the other country has the right to tax you, or
- both countries have the right to tax you.
How do DTAs decide which countries have tax rights?
Each DTA is different. You or your tax agent need to check the one that applies to you.
In general, DTAs consider the country:
- where your permanent home is
- you have the strongest personal and economic ties to
- you spend the most time in
- you are a citizen of.
Do I pay tax twice if there is no DTA?
If you’re a New Zealand tax resident you might be able to claim a credit for tax you’ve paid to another country.
If you’re a tax resident of New Zealand and another country you might pay tax twice on the same income. It depends on your circumstances. You might want to talk to a tax agent.