Leaving New Zealand Filing Tax Return

Working holiday makers, if you are leaving New Zealand and not receiving income anymore, you may need to complete an Individual income tax return (IR3) declaring your income and expenses up to your date of departure.

How To File Tax Return

There are 2 ways in getting your tax return.

• IRD Tax Return Link – Wait till the end of the tax year (31st March), and log into myIR(IRD online account), click on the link and follow the step by step guide.
• Send in IR3 form to IRD office – Do it on the day you are about (a week before) to leave New Zealand. Download the IR3 form, fill it up and submit to Inland Revenue office or via post (P O Box 39090 Wellington Mail Centre Lower Hutt 5045).

Needed Documents

Together with your IR3, you need to prepare:

• Proof of your income, deductions and claimable expenses information until the date of your departure.
• Airline tickets or a travel agent’s itinerary with proof of full payment.
• Updated postal address, including country and postcode.

IRD Return Tips

• Send tax return inquiries through the myIR secured mail.
• Remain your New Zealand bank account active to get your tax return directly credited into it.(Fastest and safest)
• Nominate someone to help you out, you need to provide his/her name and IRD number to IRD.
• Do it online.

Working Holiday IR3 Tax Return

How To Do A Tax Return After New Zealand Working Holiday

How To Do A Tax Return After New Zealand Working Holiday? Majority of the New Zealand Working Holiday makers tend to ask this question before leaving New Zealand.

To file a tax return,  IR3 is the form that you need. According to IRD Official Website, if you arrive or leave New Zealand part-way through the year, it’s not compulsory to file a tax return for the current income year. If you choose to file a return you’ll only get a refund if you’ve overpaid your tax.

IRD Link Sent Out On 31 May

Usually, New Zealand IRD will sent out IR3 link to your IRD online account on 31st May every year. All you need to do is click on the link and follow the step by step guide. Once you are done, you are all set to receive reply from IRD.

During the tax return process, IRD calculates the difference between the tax you paid and the tax you should have paid. That is how, you will get a refund or having to pay extra tax to IRD.

IRD Tax Return Tips

During the tax return process, I suggest,

• Remain your New Zealand bank account, so that the tax return can be deposited directly to your account. It is much faster to get your tax return that way.
• There is no rush to do the tax return, you can do it when you are back in your home country, by using the online tax return method.
• Consider open up fix deposit account with your tax return money.

More about filling tax return, click HERE.

Steps To Apply New Zealand IRD

All New Zealand holiday makers ought to apply a IRD account. IRD is needed before you start to work, and to pay your income tax.

It is easy to apply New Zealand IRD, and it is recommended to do it while you are in New Zealand. Please print and fill up the IR742 , make photocopies of all the needed documents before you depart to New Zealand. It is quite costly to print (in the internet cafes) in New Zealand.

Step By Step Apply New Zealand IRD

1. Fill up the IR742 application form.
2. Open a New Zealand bank account, and request for a letter to confirm your bank account is active.
3. Make photocopies of your passport, driving licence, working holiday visa.
4. Hand in your documents (2 and 3) to IRD office, Automobile Association (AA) Driver Licensing Agents or PostShops.

Apply IRD From Oversea

You can do so by open up a New Zealand bank account online, and sending all the scan documents to:

• offshore@ird.govt.nz or post OR
• Inland Revenue, PO Box 39050, Wellington Mail Centre 5045, New Zealand.

However, the Inland Revenue can’t guarantee that emails won’t be intercepted or read while in transit.

Apply New Zealand Bank Account Before IRD

According to the new ruling, effective on 1st October 2015 onwards, all international applicants ought to have a New Zealand bank account number before applying a New Zealand IRD number. This bank account number is required in the IRD application form.’

Bank First Then IRD

For those who are in the midst of preparing all the things needed for your New Zealand working holiday, make sure you head to a New Zealand bank before the IRD office. 

By the way, here are the documents that you need in order to apply a IRD account:

• Passport
• Driving licence or utility bill statement 
• Proof of your New Zealand bank account is fully functional and active. (Internet banking print out is acceptable) Please refer HERE 
• Most recent tax statement (optional)
• New Zealand Work Visa (Printed on your passport)
• Fill up IR742 application form

New Zealand Working Holiday Tax Rate

What are the New Zealand Working Holiday tax rate? How much tax will be deducted from my pay? New Zealand tax is depending on how much you earn in a year.

• If you earn up to NZ$14000 you will pay 11.95%
• If you earn from NZ$14001 to NZ$48000 you will pay 18.95%
• If you earn from NZ$48001 to NZ$70000 you will pay 31.45%
• If you earn from NZ$70001 and over you will pay 46.45%

Usually most of the New Zealand Working holiday maker will get either 11.95% or 18.95% of tax deduction.

New Zealand Working Holiday Tax Rate

New Zealand offers a very comprehensive tax system. It’s called Pay As You Earn (PAYE). How to calculate your PAYE? I highly recommend working holiday makers to try out the Online PAYE calculator.