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New Zealand law explained for everyone

Income Tax Act 2007

Definitions and related matters - Residence and source in New Zealand

YD 1: Residence of natural persons

You could also call this:

“How to determine if you're a New Zealand tax resident”

This section explains when you’re considered a New Zealand resident for tax purposes. Here’s what you need to know:

You’re a New Zealand resident if you have a permanent home here, even if you have one somewhere else too.

You’re also a resident if you spend more than 183 days in New Zealand over a 12-month period. In this case, you’re counted as a resident from the first of those 183 days until you leave for a long time.

If you leave New Zealand for more than 325 days in a 12-month period, you stop being a resident. This starts from the first of those 325 days until you become a resident again.

Even if you’re away for a long time, you’re still a resident if you’re working for the New Zealand government overseas.

If you’re in New Zealand for part of a day, it counts as a whole day here and not as a day away.

If you’re a non-resident seasonal worker, you’re treated as a non-resident while you’re working here under special instructions.

These rules also apply if you’re acting as a trustee.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523134.

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Money and consumer rights > Taxes
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Part Y Definitions and related matters
Residence and source in New Zealand

YD 1Residence of natural persons

  1. This section contains the rules for determining when a natural person is a New Zealand resident for the purposes of this Act.

  2. Despite anything else in this section, a natural person is a New Zealand resident if they have a permanent place of abode in New Zealand, even if they also have a permanent place of abode elsewhere.

  3. A natural person is a New Zealand resident if they are personally present in New Zealand for more than 183 days in total in a 12-month period.

  4. If subsection (3) applies, the natural person is treated as resident from the first of the 183 days until the natural person is treated under subsection (5) as ceasing to be a New Zealand resident.

  5. A natural person treated as a New Zealand resident only under subsection (3) stops being a New Zealand resident if they are personally absent from New Zealand for more than 325 days in total in a 12-month period.

  6. The natural person is treated as not resident from the first of the 325 days until they are treated again as resident under this section.

  7. Despite subsection (5), a natural person who is personally absent from New Zealand in the service, in any capacity, of the New Zealand Government is treated as a New Zealand resident during the absence.

  8. For the purposes of this section, a natural person personally present in New Zealand for part of a day is treated as—

  9. present in New Zealand for the whole day; and
    1. not absent from New Zealand for any part of the day.

      1. Repealed

      2. Repealed

      3. Despite subsection (3), a non-resident seasonal worker is treated for the duration of their employment under the recognised seasonal employer (RSE) instructions as a non-resident.

      4. In this section, a natural person includes a natural person who is acting in the capacity of trustee.

      Compare
      Notes
      • Section YD 1(1): amended, on , by section 246(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1(2): amended, on , by section 246(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1(3): amended, on , by section 246(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1(4): amended, on , by section 246(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1(5): amended, on , by section 246(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1(6): amended, on , by section 246(6) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1(7): amended, on , by section 246(7) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1(8): amended, on , by section 246(8) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1(9) heading: repealed (with effect on 1 April 2008), on , pursuant to section 571(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section YD 1(9): repealed (with effect on 1 April 2008), on , by section 571(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section YD 1(10) heading: repealed (with effect on 1 April 2008), on , pursuant to section 571(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section YD 1(10): repealed (with effect on 1 April 2008), on , by section 571(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section YD 1(11) heading: added (with effect on 1 April 2009), on , by section 571(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section YD 1(11): added (with effect on 1 April 2009), on , by section 571(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section YD 1(11): amended, on , by section 146(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
      • Section YD 1(12) heading: inserted, on , by section 246(9) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1(12): inserted, on , by section 246(9) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1 list of defined terms company: repealed, on , by section 246(10)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1 list of defined terms natural person: inserted, on , by section 246(10)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YD 1 list of defined terms non-resident seasonal worker: added (with effect on 1 April 2009), on , by section 571(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section YD 1 list of defined terms recognised seasonal employer (RSE) instructions: inserted, on , by section 146(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
      • Section YD 1 list of defined terms recognised seasonal employment scheme: repealed, on , by section 146(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
      • Section YD 1 list of defined terms transitional resident: repealed (with effect on 1 April 2008), on , by section 571(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section YD 1 list of defined terms trustee: inserted, on , by section 246(10)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).