Opening a NZ bank account - first get your tax number

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Forums › Finance and wealth management › Opening a NZ bank account - first get your tax number

LittleGreyCat

154 posts

Master Geek
+1 received by user: 11

#311388 11-Jan-2024 10:34

We will be over in early February to activate our Parent Resident visas.

We are considering opening a NZ bank account - all our finances are UK based at the moment.

What are the implications of registering a NZ tax ID?

I can see that any interest earned might be liable for tax but how would that work?

Would I/we be required to fill in a tax return each year?

We are still working through the implications of the new 10 year Resident (but not Permanent Resident) visas so will be mainly UK based for 2024 minimum.

Any advice/pointers/gotchas welcome.

MadEngineer

4591 posts

Uber Geek
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Trusted

#3180408 11-Jan-2024 10:40

No implications.

A child for example commonly registers for an IRD number at birth.

You're not on Atlantis anymore, Duncan Idaho.

cddt

1965 posts

Uber Geek
+1 received by user: 1904

#3180418 11-Jan-2024 11:11

You will have to register for an IRD number before you can open a bank account. Expect to provide a lot of documentation for AML purposes.

Tax will be deducted from any interest payments automatically.

You will not need to file an annual return unless you have a complex set up of income and assets. Most people receive refunds or bills automatically from the IRD.

If you make any donations to charities over $5 you can claim a tax credit of 33%.

Tzoi

425 posts

Ultimate Geek
+1 received by user: 90

#3180743 12-Jan-2024 03:54

Getting an IRD number in and of itself shouldn't cause any tax implications to arise. When you become a NZ tax resident, that is when NZ will want to tax you on your worldwide income, and if you are also tax resident in the UK, then the UK will also want to tax you on your worldwide income. Double tax should be resolved by tax treaty between NZ/UK but it can become complicated. NZ also has this transitional tax residency thing but it's not something I know much about.

Handle9

11924 posts

Uber Geek
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Lifetime subscriber

#3180747 12-Jan-2024 06:48

Unless earn significant income in NZ, you are in the country for 183 days and/or you have a permament place of abode having an IRD number is essentially meaningless.

Interest will be taxed at source (the bank will deduct tax at your tax rate, 10.5% if your income is below $14,000) so you don't need need to do anything.

Edit:

I'm not an NZ tax resident but have a rental property in NZ. It takes me about 2 hours a year to file our IR3NR and that's only because of the rental property.

cshwone

1092 posts

Uber Geek
+1 received by user: 844

#3180830 12-Jan-2024 11:16

There is a good summary by PWC here

When you do move across for good something to consider is sorting out where you are domiciled. I have a monthly pension from the UK which Is now paid to me tax free in the UK by agreement with the UK tax folk and I pay all the tax here in NZ. If you end up paying some tax in the UK you will still get hit with another tax bill from NZ as NZ will tax on worldwide income and especially with UK personal allowances you will not have paid enough tax.

Just dealing with one tax authority makes life far simpler.

LittleGreyCat

154 posts

Master Geek
+1 received by user: 11

#3270038 10-Aug-2024 04:35

Just realised that I haven't updated this.

Getting an IRD number turned out to be amazingly simple.

Just apply on line and agree that they can use the information from Immigration to validate who you are.

Finding this out took a long time; doing it took a couple of minutes.

We never did open a bank account, but we have loads of time yet.