All Kiwis pay tax on the income they earn. This payment is mandatory and applies to all wages, commissions, return on investments, rent from property, or any other source of income. The residents of New Zealand are accountable for their worldwide taxable income. The Inland Revenue Department collects taxes on behalf of the government. The taxes are used for building and maintaining infrastructure, defence, health facilities, law and order and social welfare. There is a pay as you earn (PAYE)

Just when you think you’ve got a handle on the best income tax credit for your needs, the IRD comes along and changes the rules! Here in New Zealand, you can claim tax credits for all kinds of things. That way, you can reduce your net income — and, as a result, reduce your tax rate. The basic premise of income tax credits hasn’t changed. For example, if you made $50,000 this year and you have a $5,000 income tax

Every year, millions of taxpayers promptly pay up income tax as mandated by the Government of New Zealand. Taxpayers cough up billions of dollars in taxes, filling up the government coffers and hoping that their hard earned money is wisely spent on public services that will enhance their quality of life in the years to come. Governments spend taxpayers’ money on a wide range of programmes from education to defence and from welfare to infrastructure. Yet economists believe that some

The income tax rate, the rate that every New Zealander pays on every dollar that they earn, is always a hot topic, especially around election time. But how much are we actually paying, and how does the New Zealand income tax rate compare to other countries? One thing most of us do know, is that our income tax has dropped in recent years, especially in the higher income tax brackets, but how far has it dropped? In a nutshell, are

The amount of your New Zealand tax refund, if any, will be determined by your personal circumstances, and many people are pleasantly surprised by the amount of refund they receive. There is no way to calculate how much an average tax refund would be, as it varies so much between individuals. Some tax agents claim the average refund they claim for their clients is around $500 – a pleasant surprise at the end of the year! Your agent will take

Income tax is something we have to pay, and like Benjamin Franklin said, only two things are certain in life, taxes and death. We pay income tax on every dollar we earn and it comprises a part of every minute we work. Unfortunately, when it comes to New Zealand income tax rates, we only get a say every 4 years when we vote and even then our choices are made for us. So how do we fare compared to ten