Bringing money into NZ

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    Posted: 04 Mar 2015 at 9:58pm
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Hi all, I hope this is in the right spot.
We are finally making the move back from Oz to NZ and are a bit stuck with my wife's work, she could possibly work from home in NZ but get paid into an Australian bank account.
Is there any way to get this money into NZ legally without getting taxed on it at both ends?

Cheers,

Cohen
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Post Options Post Options   Likes (0) Likes(0)   Quote ofthesea Quote  Post ReplyReply Direct Link To This Post Posted: 04 Mar 2015 at 10:05pm
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You can run a foreign currency account at your NZ bank, at least ASB has it so the rest must as well.
It sounds like you won't be due GST as the service is not in NZ but probably due income tax somewhere but not both
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Post Options Post Options   Likes (0) Likes(0)   Quote Kevin.S Quote  Post ReplyReply Direct Link To This Post Posted: 04 Mar 2015 at 11:02pm
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I work for an overseas company and get paid into a foreign bank account. I get paid directly by my employer, without paying any tax in that country, as I'm not tax resident there. Then I just fill in a tax return each year here and pay tax on my earnings here. As your wife won't be resident in Australia she shouldn't be liable for Australian tax, but that may mean her employer paying her in a different way instead of through the standard payroll.
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Post Options Post Options   Likes (0) Likes(0)   Quote makka Quote  Post ReplyReply Direct Link To This Post Posted: 04 Mar 2015 at 11:40pm
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From what I have read, even if your a non resident in Australia you still have to pay tax on income earner there which is a pain in the arse and none of the accountants I have spoken to have been very helpful!
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Post Options Post Options   Likes (0) Likes(0)   Quote riga Quote  Post ReplyReply Direct Link To This Post Posted: 05 Mar 2015 at 9:28am
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It all depends on what your wife is doing and how she is running the business/work.

Is she running a business as a sole trader or is she running it through a company or is she an employee or a contractor to an Australian company? They all result in different outcomes.

The only given is that she will be taxed here on the income as I am presuming you will both become NZ tax residents again (if you did become non-resident for a while).

In some of the situations above she might also be taxed in Australia depending on how the DTA applies to the situation but she should get a tax credit in New Zealand for the tax paid in Australia and as the rate in Aus is usually higher, there should be no further tax to pay in NZ.

The act of bringing cash from an Aus bank account to a NZ bank account doesn't trigger a tax liability as such, it is more how you made that cash in the first place, i.e. even if the cash stayed in the Aus bank account, tax would normally still be payable in NZ.

Hopefully the above sheds some light.
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Post Options Post Options   Likes (0) Likes(0)   Quote makka Quote  Post ReplyReply Direct Link To This Post Posted: 05 Mar 2015 at 4:15pm
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Hi riga, that is very helpful! She will be an employee of an Australian company but working from home in NZ
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Post Options Post Options   Likes (0) Likes(0)   Quote Big -Dave Quote  Post ReplyReply Direct Link To This Post Posted: 05 Mar 2015 at 7:17pm
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ring the IRD, get it straight from them, dont get caught out just trying to do the right thing.
While people who have offered advice on here might be correct, do you want to rely on their say so?
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Post Options Post Options   Likes (0) Likes(0)   Quote devocean 1 Quote  Post ReplyReply Direct Link To This Post Posted: 05 Mar 2015 at 7:57pm
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Your exchange rate is goin to be shoking at the moment.
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Post Options Post Options   Likes (0) Likes(0)   Quote riga Quote  Post ReplyReply Direct Link To This Post Posted: 05 Mar 2015 at 9:32pm
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Originally posted by Shrekky Shrekky wrote:

ring the IRD, get it straight from them, dont get caught out just trying to do the right thing.
While people who have offered advice on here might be correct, do you want to rely on their say so?

Sometimes you will only get limited information from the Inland Revenue, some are very helpful but most on the phones are usually only trained for general NZ queries rather than international and trans-tasman queries.
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Post Options Post Options   Likes (0) Likes(0)   Quote orange ruffie Quote  Post ReplyReply Direct Link To This Post Posted: 05 Mar 2015 at 9:36pm
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Check out clickex that's how I got my Aussie pay home
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Post Options Post Options   Likes (0) Likes(0)   Quote riga Quote  Post ReplyReply Direct Link To This Post Posted: 05 Mar 2015 at 9:41pm
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Originally posted by makka makka wrote:

Hi riga, that is very helpful! She will be an employee of an Australian company but working from home in NZ

Usually in that case the Australian company is required to register with the Inland Revenue as an employer and withhold PAYE on the wages/salary that they pay as she is exercising the employment in NZ.  There is an exemption in the DTA if under 180 or 183 days (I can't remember) in New Zealand but assuming you will be here for longer than that so exemption won't apply.

Maybe get her to query it with the company and see what they say.
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Post Options Post Options   Likes (0) Likes(0)   Quote makka Quote  Post ReplyReply Direct Link To This Post Posted: 06 Mar 2015 at 5:28pm
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Originally posted by riga riga wrote:

Originally posted by makka makka wrote:

Hi riga, that is very helpful! She will be an employee of an Australian company but working from home in NZ


Usually in that case the Australian company is required to register with the Inland Revenue as an employer and withhold PAYE on the wages/salary that they pay as she is exercising the employment in NZ.  There is an exemption in the DTA if under 180 or 183 days (I can't remember) in New Zealand but assuming you will be here for longer than that so exemption won't apply.

Maybe get her to query it with the company and see what they say.


That's the problem at the moment, her boss said yea, her bosses boss said yes, now HR have said no because of the tax
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Post Options Post Options   Likes (0) Likes(0)   Quote peeda Quote  Post ReplyReply Direct Link To This Post Posted: 07 Mar 2015 at 11:44pm
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Depends if you are a NZ tax resident or not - which is you are if you have stayed in NZ for a period of 183 days or more over a 12 month period.
 
If you are - you will need to record that as income in your NZ tax return - If no tax has been paid in Australia then it is subject to NZ tax and you will need to pay here. If the sum is over $2,500 it will be exposed to use of money interest + you will have to pay provisional tax for the following year.
 
See an accountant (ie. me) if you want proper advice.
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Post Options Post Options   Likes (0) Likes(0)   Quote Gibbs Quote  Post ReplyReply Direct Link To This Post Posted: 11 Mar 2015 at 2:29pm
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Why not just get payed into a NZ account?
One fish, two fish, red fish, Mako!.
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