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Hi I have a query

Please take a case when a NZ resident earns some income in NZ [ x] and sends some amount overseas [ y on which he has already paid some tax to IRD ] and earns some interest [ z] overseas
If that amount y +z is brought back to NZ will IRD consider [ y +z ] as taxable or IRD will consider just amount Z as part of taxable income

Any idea ?
Any links to some IRD site for such thing

Plz suggest
MANY THANKS
 

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My understanding, as a UK and NZ tax paying layman (i.e. not a tax expert!) is that bringing the money back into NZ is not relevant. If you are registered as a NZ resident for tax purposes, you must declare all worldwide income (including interest) and pay tax to the IRD. It doesn't matter what you do with the money, where you take it, etc. So I think the answer to your question is Z.

However (1) . . . if you have already paid tax on the interest earned outside of NZ and that country has a Double Taxation Agreement (DTA) with NZ, then the IRD may let you offset some, or all, of the tax paid.

However (2) . . . the IRD will allow full tax exemption from overseas earnings during the first four years of NZ residency. But I am not sure if this exemption includes interest earned. I do know it covers work related income.

The best thing to do is ring the IRD. I have found them responsive and very helpful.
 
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