An individual is resident in New Zealand if:

• He/she has a permanent place of abode in New Zealand, or

• He/she is present in New Zealand for more than 183 days in any 12 month period.

The residence begins with the first day of the period of presence. Whilst there is no statutory definition of ‘permanent place of abode’, it makes a reference to a place with which a person has an enduring relationship and where the person habitually or normally lives.

A resident of New Zealand (including individual and company) is liable to tax in New Zealand on their worldwide income. A New Zealand resident individual may qualify for a Transitional Resident Status.

Transitional Resident Individuals

A resident of New Zealand that qualifies as a Transitional Resident is exempt from tax on foreign sourced income, but is liable for tax in New Zealand on New Zealand sourced income and worldwide employment income. Some exceptions to this rule apply.

An individual is regarded as non-resident if:

• He/she is absent from New Zealand for more than 325 days in any 12 month period.

Non-residence begins with the first day of the period of absence. A 325 days absence does not automatically impute a non-resident status. A non-resident of New Zealand is liable for tax in New Zealand only on income from a New Zealand source.

A company is regarded as resident in New Zealand if:

• It is incorporated in New Zealand,

• It has its Head Office in New Zealand,

• It has its centre of management in New Zealand,

• It is controlled from New Zealand.

A company that is incorporated outside New Zealand will be resident in New Zealand if it satisfies any of these criteria. Companies resident in New Zealand are subject to tax in New Zealand on their world-wide income. Non-resident companies are subject to tax in New Zealand on their New Zealand sourced income only.

Expatriate Individuals

Income derived by a non-resident from personal services performed for a non-resident employer during a visit to New Zealand is not subject to income tax in New Zealand, if that visit does not exceed a period of 92 days in the income year and that income is subject to tax in the home country of the individual.