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Income Tax Act 2007

Income - Exempt income

CW 27: Certain income derived by transitional resident

You could also call this:

“Tax exemption for some foreign income of new residents”

If you’re a transitional resident in New Zealand, you don’t have to pay tax on some of your foreign income. This means money you earn from outside New Zealand is exempt from tax. However, there are two types of income that you still need to pay tax on:

  1. If you work while you’re a transitional resident, you need to pay tax on the money you earn from that job. This includes any kind of pay or benefit you get from your employer.

  2. You also need to pay tax on any money you make by providing services to others.

All other foreign income you get while you’re a transitional resident is tax-free. This rule is part of the Income Tax Act 2007, and it’s meant to help people who have recently moved to New Zealand.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513226.

Topics:
Money and consumer rights > Taxes
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Part C Income
Exempt income

CW 27Certain income derived by transitional resident

  1. Income derived by a person who is a transitional resident is exempt income if the income is a foreign-sourced amount that is none of the following:

  2. employment income of a type described in section CE 1 (Amounts derived in connection with employment) in connection with employment or service performed while the person is a transitional resident:
    1. income from a supply of services.

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