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Whiwhinga mō ngā tāke i utua i tāwāhi Credit for tax paid overseas

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New Zealand tax residents can usually claim a credit for tax paid overseas.

Who can claim the credit?

You can claim the credit if:

  • you’re a New Zealand tax resident
  • you earned income from another country
  • you paid tax to the other country on that income
  • the other country’s income tax is largely the same nature as income tax in New Zealand.

If New Zealand has a double tax agreement (DTA) with the other country you or your tax agent need to check the DTA to see what tax credits it allows.

How much tax credit can I claim?

You can claim the lowest amount of the:

  • tax you paid to the other country
  • tax you would need to pay in New Zealand on the same income
  • amount stated in the DTA between New Zealand and the other country.

How do I claim a tax credit?

You claim the credit when you file your individual income tax return at the end of the tax year. You need to show proof of the tax you’ve paid to the other country.