Taxation of international executives
Are there social security/social insurance taxes in New Zealand? If so, what are the rates for employers and employees?
New Zealand does not have specific social security taxes. New Zealand's social security system is funded through general taxation. A number of benefits exist under this scheme, aimed at assisting the elderly, sick, widowed, and unemployed. For example, a national superannuation benefit called NZ Super is available to all New Zealanders (citizens and permanent residents) from the retirement age (currently age 65) who have lived in New Zealand for a minimum of 10 years. This is not a “means” tested benefit.
Accident compensation cover is however primarily funded by way of a levy paid by employers and employees (earner premium). A comprehensive range of benefits are available under this scheme if a person has suffered an accidental injury.
There is no compulsory superannuation saving (as noted earlier all New Zealanders are entitled to receive NZ Super at the retirement age). However, there is a voluntary workplace savings scheme called KiwiSaver. KiwiSaver must be offered by all employers to their employees. All full-time and part-time employees aged between 18 and 65 are eligible to participate in the scheme.
KiwiSaver contributions are deducted from employees’ wages at the rate of 3 percent of gross earnings (options exist for higher levels of employee contributions to be made).
Employers are also required to contribute 3 percent. The New Zealand Government also provides a tax credit of up to NZD521 per annum, per employee, and certain benefits on joining (a NZD1,000 start-up contribution).
All new employees are automatically enrolled in KiwiSaver, unless they formally elect to opt- out of the scheme.
The KiwiSaver legislation does not apply to non-resident employers (unless operating through a branch or similar in New Zealand) or to employees who are not "usually living in New Zealand."
Are there any gift, wealth, estate, and/or inheritance taxes in New Zealand?
There is no longer gift duty1 in New Zealand.
There is no estate duty payable on a deceased’s estate.
Are there real estate taxes in New Zealand?
Are there sales and/or value-added taxes in New Zealand?
In general terms, goods and services tax2 (GST) is a value-added tax which is payable on most goods and services supplied in New Zealand. The rate at which
GST is charged is a standard rate of 15 percent.
Are there unemployment taxes in New Zealand?
Are there additional taxes in New Zealand that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax,and so on.
Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?
Inland Revenue requires taxpayers to report income received from offshore assets where this is considered taxable income in New Zealand.
New Zealand residents with US financial arrangements are required to comply with the Foreign Account Tax Compliance Act (FATCA) and New Zealand financial institutions must register with the IRS and report on US citizens and tax residents who hold financial assets that exceed certain thresholds.
New Zealand also participates in the Automatic Exchange of Information (AEOI) and the Common Reporting Standard (CRS).
1. All taxation information in this section is summarized by KPMG, the New Zealand member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Estate and Gift Duties Act 1968.
All information contained in this publication is summarized by KPMG New Zealand, the New Zealand member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based the Income Tax Act 2007, Estate and Gift Duties Act 1968..
© 2021 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.