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Income Tax Act 2007

Income - Exempt income

CW 24: Deferred military pay for active service

You could also call this:

“Tax-free pay for military service overseas”

If you serve in the New Zealand armed forces in an active service area, you might get something called deferred military pay. This pay is exempt from income tax. This means you don’t have to pay tax on it.

An active service area is a place outside of New Zealand. The Minister of Defence and the Minister of Finance work together to decide which areas count as active service areas.

The Minister of Defence and the Minister of Finance also decide what counts as deferred military pay. They declare which types of pay are considered ‘deferred’.

This special pay and tax exemption is allowed under the Defence Act 1990.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513215.

Topics:

Money and consumer rights > Taxes

Work and jobs > Worker rights

CW 23: Income for military or police service in operational area, or

"Tax-free income for military and police serving in operational areas"

CW 25: Value of board for religious society members, or

" Tax-free board and necessities for religious society members "

Part C Income
Exempt income

CW 24Deferred military pay for active service

Deferred military pay that is granted or paid under the Defence Act 1990 to a person for service in the New Zealand armed forces in an active service area is exempt income.
In this section,—
active service area means an area outside New Zealand that is designated as an active service area by the Minister of Defence, with the agreement of the Minister of Finance
deferred military pay means pay declared to be deferred by the Minister of Defence, with the agreement of the Minister of Finance.

Compare

2004 No 35 s CW 20