Superannuation Transfer Service

Have you transferred your foreign superannuation to New Zealand or plan to within the first 48 months of coming to New Zealand? If so, the correct calculation and application of both the transitional residency exemption and the foreign superannuation transfer exemption can save you thousands in New Zealand tax payable as a result of transferring a foreign superannuation or pension to New Zealand.

If you have transferred (or will transfer) within the first 48 months of New Zealand tax residence there is often no tax payable. Even if you transferred outside this period, the amount of tax you pay could be reduced.

We offer a fixed fee service to help you get your tax obligations sorted, and ensure you maximise the benefit of the transitional residency and foreign superannuation exemptions available. In addition to this, we can file any tax returns required to account for your superannuation transfer and include any other sources of income.

HMRC Tax Service

New migrants and returning New Zealanders who have been non-resident for ten years will receive a four-year exemption from foreign sourced income, with the exception of personal services income.

The transitional residency rule will exempt a person from tax on offshore income such as pensions, foreign superannuation and offshore investment income both active and passive. The period of transitional residency exemption is activated by becoming a New Zealand tax resident through acquiring a permanent place of abode in New Zealand or by being personally present in New Zealand for 183 days in any twelve month period.

In addition to this, there is also a four year period where a new migrant or returning New Zealander can transfer foreign superannuation to New Zealand tax-free. This superannuation exemption is similar to the transitional residency exemption but does not require you to have been a non-resident of New Zealand for a period of ten years.

Under the New Zealand/United Kingdom Double Tax Agreement (DTA), New Zealand has the sole taxing rights to offshore pension and superannuation income. We can contact the HMRC and ask them to stop deducting tax from pension and superannuation payments made to you.

As a Transitional Resident, you will be entitled to receive the income tax-free in New Zealand for 48 months from the date that you activate your New Zealand residency. This could save you thousands of pounds in taxation over the four year period.

We offer a fixed fee service to help you meet obtain any HMRC refunds due, contact us for more information about this service and details of our fixed fee.

Not from the United Kingdom? Ask us about other countries whose DTA gives New Zealand the sole taxing rights.

Tax Residency Advice

The calculation of New Zealand tax residency is central to the imposition of income tax in New Zealand. New Zealand tax residents are taxed on New Zealand sourced income and worldwide income while non-residents only pay tax on New Zealand-sourced income.

The calculation of the start date of your New Zealand tax residency is also important for determining the extent of any exemptions that apply, such as the Transitional Residency exemption or Foreign Superannuation Transfer exemption.

In addition to this, if you are leaving New Zealand for an extended period of time, you may want to become a non-resident, and we can advise on the rules that apply and the best course of action to become non-resident.

If you are a new migrant, it is important to note that tax residency is different to permanent residency status and depends on the number of days that you have spent in New Zealand in any twelve month period, and any place of abode you have in New Zealand. Travelling in and out of New Zealand in a twelve month period can trigger your New Zealand residency earlier than you think.

If you need New Zealand tax residency advice for any other reason, please contact us for more information about this service and how we can help.

Exemption Period Calculations

We can advise if you are eligible for any tax concessions in New Zealand such as the Transitional Residency Exemption or the Foreign Superannuation exemption and can determine the extent and duration of any applicable exemptions.

The correct calculation and application of the above exemptions can save you thousands in New Zealand tax payable.

As a Transitional Resident, you can receive most types of offshore income tax-free in New Zealand for a period of 48 months from the date that you trigger your New Zealand residency. Your actual exemption period can be longer than 48 months, up to a maximum of 54 months.

In addition to this, the Foreign Superannuation Transfer exemption can be applied retrospectively, this means that the amount of tax you pay in relation to your foreign superannuation transfer, if any, can be reduced significantly by calculating and applying the exemption period correctly.

We offer a fixed fee service for determining the extent and duration of your exemption period. Please contact us for more information about this service and how we can help.