Tax Residency Flashcards
What is the Permanent place of abode test?
The permenent place of abdoe test is the priority test in determningin your tax residency.
A tax residence is someone who
has residency in New Zealand for tax purposes
What items are considered in the permanent place of abode test ?
Continuity, presence, association, closeness
What is the days count test?
The days count test is the other test for detmerining tax resdiency.
how does someone become an NZ tax resident through the days count test?
A person becomes a New Zealand tax resident from the first day in a 12 month period when they have spent more 183 days in the country (partial days count)
How does someone cease being a NZ tax residence through the days count test?
A person ceases to be an NZ tax resident 325 days in a 12 month period that they are away from NZ (first full day they are away is when it starts)
What is a transitional resident
A transitional resident is someone who has not been a non-resident for a 10 year continuous period
Can only be one once
Ends when person cease to be a tax resident or the last day after the 48th month
What happens when you are a transitional resident?
Most of your foreign source income is exempt except for your employment income
How is a companies residence determined?
Incorporation, Centre of management, Control of company in NZ, Head office
Source of income?
where you perform the work is where you are taxed
