Taxes in New Zealand (tax refund / tax return)

In New Zealand, tax is administered by the Inland Revenue Department, commonly known as IRD. The tax year begins on 1 April and ends on 31 March of the following year.

If you work during your WHV in New Zealand, you will have to pay taxes like New Zealanders. The first step you need to take to work is to apply for an IRD number, which you can do as soon as you arrive. This number must be provided to your employers and guarantees that your tax will be calculated correctly. Without it, your tax is calculated on the basis of the highest index (45%). To ensure that you are taxed at the correct rate and avoid being taxed at the maximum rate of 45%, it is essential that you fill in form IR330 Tax Code Declaration and give it to each new employer (we’ll talk about this later in this guide).

In New Zealand, tax is deducted at source, directly from your payslip. This system is called PAYE for “Pay As You Earn”. A certain amount is deducted directly from your salary weekly or fortnightly, depending on how often your employer chooses to pay you. Very few companies pay four weekly or monthly. The amount of tax deducted is proportional to what you earn and is calculated directly by the IRD.

To make tax formalities in New Zealand easier, we advise you to create a profile on the IRD website: Register for online services. Almost all of the procedures can be carried out simply and easily online.