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new zealand

Manager

Don't mess with me
Generous Asset
why the tax so high, ah sam still say good, 35% please convince me. thank you:p
 

Ash007

Alfrescian
Loyal
I was not aware that the tax rate was a flat 35%. Where did you get that figure from?

He probably doesn't understand what a progressive tax scheme means. Perhaps directing him to a first year economic student could help.
 

Manager

Don't mess with me
Generous Asset
not sure that is why must ask mah.. if dont ask how to know? btw thank you guys.

but it is still much higher than in sillypore.. can convinue me why i should live there?
 
Last edited:

Leongsam

High Order Twit / Low SES subject
Admin
Asset
not sure that is why must ask mah.. if dont ask how to know? btw thank you guys.
but it is still much higher than in sillypore.. can convinue me why i should live there?

You can live anywhere you want. It's a free world. Nobody has to convince you where to live. You make your own choices.

New Zealand income taxes are higher than Singapore's but the total tax burden is a lot lower and houses and cars are much cheaper.

You have to do your own research based on the lifestyle you wish to lead and make your own decisions regarding which country is best for you.
 

Spiky

Alfrescian
Loyal
Good day to all.

Any capital gains tax ?

How about tax on profits from trading stocks and derivatives ?

Thanks.
 

Leongsam

High Order Twit / Low SES subject
Admin
Asset
Good day to all.

Any capital gains tax ?

How about tax on profits from trading stocks and derivatives ?

Thanks.

There is no capital gains tax in NZ.

If you make money regularly from trading, it's classified as income and is taxed accordingly.

If you invest long term and seldom trade, profits can be classified as capital gain and not treated as income.
 

cathylmg

Alfrescian
Loyal
There is no capital gains tax in NZ.

If you make money regularly from trading, it's classified as income and is taxed accordingly.

If you invest long term and seldom trade, profits can be classified as capital gain and not treated as income.

How bout capital gain from sale of property? Any tax?
 

neddy

Alfrescian (Inf)
Asset
How bout capital gain from sale of property? Any tax?

I assume that you are referring to investment properties.
The thing I like about NZ is no CGT, higher rate of depreciation (+1.5% over oz) and no stamp duty. :biggrin:


For people interested in comparing the tax of both countries (OZ Vs NZ)

http://www.ato.gov.au/businesses/content.aspx?doc=/content/50664.htm

(sample from the link)

Income tax


<TABLE><TBODY><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>The income tax treatment depends on residency status.
Residents of New Zealand are taxed on their worldwide income and non-residents are taxed on New Zealand-sourced income only.
It is possible to be a resident of both New Zealand and Australia. If this occurs, Article 4 of the Australia - New Zealand Double Tax Agreement (DTA) contains a "tie-breaker" provision which allocates residency to one of the jurisdictions.

</TD><TD vAlign=top width=323 colSpan=2>The income tax treatment is dependent on the residency status of the entity.
Residents of Australia are generally taxed on their worldwide income. Non-residents are generally only taxed on Australian sourced income. In most cases, temporary residents are only taxed on Australian sourced income.
It is possible to be a resident of both Australia and New Zealand. If this is the case, Article 4 of the Australia - New Zealand Double Tax Agreement (the DTA) contains a 'tie-breaker' provision which allocates residency to one of the jurisdictions for the purposes of the DTA.

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Income year

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>The standard New Zealand income year is from 1 April to 31 March.

You may adopt a different balance date if the nature of your business makes a 31 March balance date inappropriate. Other reasons for having a non-standard balance date include:
  • wishing to align to your overseas company's balance date (i.e. 30 June in Australia)
  • a subsidiary wishes to align its balance date with its parent company
  • an estate wishes to adopt the deceased's date of death, or
  • a shareholder-employee wants the same balance date as the company.
</TD><TD vAlign=top width=323 colSpan=2>The standard Australian income year is from 1 July to 30 June. Entities, with the leave of the Australian Commissioner of Taxation, are able to adopt a different income year period.

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Income tax rates for resident individuals

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>

</TD><TD vAlign=top width=323 colSpan=2>Income tax rates for resident individuals for the year ending 30 June 2007
</TD></TR><TR><TD vAlign=top width=207>Taxable income
</TD><TD vAlign=top width=127>Tax rate
</TD><TD vAlign=top width=202>Taxable income
</TD><TD vAlign=top width=121>tax rate

</TD></TR><TR><TD vAlign=top width=207>
Up to $38,000
$38,001 to $60,000
$60,001 and over

</TD><TD vAlign=top width=127>
19.5 %
33.0 %
39.0 %

</TD><TD vAlign=top width=202>$A
$0 - $6,000
$6,001 - $25,000
$25,001 - $75,000
$75,001 - $150,000
$150,001 +

</TD><TD vAlign=top width=121>
0%
15%
30%
40%
45%

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>An additional 1.3% of ACC earners' levy is placed on these tax rates.
Please note that the above rates are progressive, therefore, if you earn $61,000, the 39% rate will only apply to the last $1,000 of income.

</TD><TD vAlign=top width=323 colSpan=2>For more information, refer to Individual income tax rates.
Generally, Medicare levy at the rate of 1.5% of taxable income is also payable. An additional 1% Medicare levy surcharge is sometimes payable.

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Income tax rates for non resident individuals

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2 rowSpan=3>The income tax rates for non-resident individuals are the same as the income tax rates for resident individuals.

</TD><TD vAlign=top width=323 colSpan=2>Income tax rates for non-resident individuals for the year ending 30 June 2007
</TD></TR><TR><TD vAlign=top width=202>Taxable income
</TD><TD vAlign=top width=121>tax rate

</TD></TR><TR><TD vAlign=top width=202>$A
$0 - $25,000
$25,001 - $75,000
$75,001 - $150,000
$150,001 +

</TD><TD vAlign=top width=121>
29%
30%
40%
45%

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Income tax rates for companies (irrespective of residency status)

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>33% *
* Please note that this rate is set to change to 30% from the 2008 - 2009 income tax year, commencing on 1 April 2008.

</TD><TD vAlign=top width=323 colSpan=2>30%

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Capital gains tax (CGT)

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand does not have capital gains tax.

</TD><TD vAlign=top width=323 colSpan=2>Capital gains tax (CGT) is payable on the capital gains you make when a capital gains tax event occurs - such as, the sale of an asset.
Any capital gains which are taxable should be included in your annual income tax return. CGT is not a separate tax - it is merely a component of your income tax.
Generally, capital gains made in relation to CGT assets acquired on or after 20 September 1985 are taxable.
Residents of Australia are liable for CGT on assets worldwide.
If a capital gains tax event occurred prior to 12 December 2006, a foreign resident was not liable to capital gains tax (nor was the foreign resident treated as having made a capital loss) unless the asset had a 'necessary connection with Australia'. This rule also applied to temporary residents from 1 July 2006 to 12 December 2006.
If a capital gains tax event occurs on or after 12 December 2006, a foreign resident or a temporary resident is not liable to capital gains tax (nor is treated as having made a capital loss) unless the asset is 'taxable Australian property'.

To work out whether you have to pay tax on your capital gains, you need to know:
  • whether a CGT event has happened to you
  • the time of the CGT event
  • what assets are subject to CGT
  • how to calculate the capital gain or capital loss
  • whether there is an exemption or rollover that allows you to reduce or disregard the capital gain or capital loss
  • whether the CGT discount applies, and
  • whether you are entitled to any of the small business CGT concessions.
</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Paying income tax throughout the year

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>Provisional tax
If your residual income tax ("tax to pay" figure on your last return) was more than $2,500 you'll be liable for provisional tax. The provisional tax you pay during the year is offset against your end of year tax payable figure.
For more information please refer to Paying business income tax.

</TD><TD vAlign=top width=323 colSpan=2>Pay As You Go (PAYG) Instalments
The pay as you go (PAYG) instalments system is used for making instalment payments during the income year towards your expected tax liability on your business and investment income. Your actual tax liability is worked out at the end of the income year when your annual income tax return is assessed.
Your PAYG instalments for the year are credited against your assessment to determine whether you owe tax or are owed a refund. The Tax Office will tell you if you have to pay PAYG instalments.
For more information refer to PAYG instalment essentials

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>The amount of income tax you have to pay at the end of the year

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>Residual income tax is the amount of tax you have to pay after subtracting any rebates and tax credits you may be entitled to (excluding other tax payments made during the year). It is calculated on your end of year tax return.


</TD><TD vAlign=top width=323 colSpan=2>Is the amount of tax you have to pay after subtracting any tax offsets, this includes rebates and tax credits you may be entitled to (excluding other tax payments made during the year). It is calculated on your end of year tax return.

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Company and imputation rules

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>Imputation is a system that allows companies to pass on to their shareholders the benefit of the New Zealand income tax they have already paid. Companies can do this by "imputing" (attaching to the dividends they pay out) credits for the income tax the company has already paid. The amount of "imputed" credits is called an imputation credit.
The Trans-Tasman imputation legislation was enacted on 25 November 2003 and allows:
  • Australian companies to elect to maintain an Imputation Credit Account (ICA) in New Zealand
  • Wholly owned groups of companies (either, Australian and/or New Zealand) to elect to form groups for imputation purposes only
  • Both types of elections to be made for the 2004 imputation year (1 April 2003 to 31 March 2004) onwards.
For further information please refer to trans-Tasman imputation.

</TD><TD vAlign=top width=323 colSpan=2>Since 1987, the imputation system has allowed Australian companies (and other entities taxed like companies) which pay Australian tax, to pass on to their Australian shareholders a credit for income tax paid on profits when distributing those profits. The tax paid by the company is allocated to shareholders by way of franking credits attached to the dividends they received.
Although shareholders are taxed on the full amount of the profit represented by their dividend distribution, they are allowed a franking credit for the tax already paid by the corporate entity.
This prevents double taxation - that is, the taxation of company profits when earned by a company, and again when a shareholder receives a dividend.
Foreign residents cannot claim a franking credit. However, if a franked dividend is paid to a foreign resident, the dividend will be exempt from Australian income and withholding taxes.
From 1 October 2003, a New Zealand company that has chosen to join the Australian imputation system may pay dividends franked with Australian franking credits. For instance, a New Zealand company might have paid Australian income tax and might pay dividends franked with Australian franking credits (as opposed to dividends franked with New Zealand franking credits). Australian residents who own shares in a New Zealand company or who receive a distribution from a partnership or trust that receives dividend income from the New Zealand company may be able to claim a tax offset for the Australian franking credits. This reform is known as the Trans-Tasman imputation reform.

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Debt and equity rules

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand does not have debt and equity rules.

</TD><TD vAlign=top width=323 colSpan=2>Australia has specific rules that determine what constitutes equity in a company and debt in an entity for certain tax purposes with effect from 1 July 2001. The debt and equity tests determine whether a return on an interest in an entity may be frankable and non-deductible (like a dividend) or may be deductible to the entity and not frankable (like interest).
These rules are also relevant for the thin capitalisation rules and for withholding tax purposes. A debt interest classification may also be important for the purposes of the consolidations measures (in identifying membership interests).
For more information refer to Debt and equity tests: guide to the debt and equity tests.

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Trusts

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>In general, the initial amount of money you put into a trust is not taxed. Any income the trust earns (eg, through investment or business income) is taxed at a flat rate of 33 cents in the dollar. The trustee is liable for paying this income tax regardless of where they live in the world.

</TD><TD vAlign=top width=323 colSpan=2>Under Australian income tax law, most trust estates are not taxed as companies.
Generally, if the income of the trust is distributed to the beneficiary, the beneficiary will include that income in their assessable income. If the beneficiary is a non-resident, under 18 years of age or under a legal incapacity, the trustee will be assessed on the trust income on behalf of the beneficiary.
Ordinarily, if no beneficiary is presently entitled to the income of the trust, the trustee will be assessed on the trust income.
Special rules apply to certain public trading trusts and certain corporate unit trusts which are treated as companies, and to superannuation funds.

</TD></TR><TR><TD vAlign=top width=658 colSpan=4>Depreciation

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>New Zealand
</TD><TD vAlign=top width=323 colSpan=2>Australia

</TD></TR><TR><TD vAlign=top width=334 colSpan=2>Depreciation is a deduction that business taxpayers can claim against their gross income. It's an allowance given in recognition of the fact that fixed assets decrease in value over their working life. Not all fixed assets can be depreciated. For further information refer to Business income tax - Depreciation.

</TD><TD vAlign=top width=323 colSpan=2>Generally, a deduction is available for the decline in the value of certain depreciating assets which are used to earn assessable income. Some items, like land and trading stock, are specifically excluded from the definition of a depreciating asset.
For more information refer to Guide to depreciating assets

</TD></TR></TBODY></TABLE>
 
Last edited:

Manager

Don't mess with me
Generous Asset
hi sam, do u happen to know if new zealand banks will accept foreigner to open bank account or fix deposit? if so, is there any special rules that i need to know?
the interest rate in singapore sucks unlike in new zealand. if possible i would rather put my money in the overseas banks than in sillypore.

pls advise. thanks.
 

Leongsam

High Order Twit / Low SES subject
Admin
Asset
the interest rate in singapore sucks unlike in new zealand. if possible i would rather put my money in the overseas banks than in sillypore.
pls advise. thanks.

Yup you can open an account in any NZ bank. In fact, you can go to ANZ's Singapore branch and they'll open an account for you in an ANZ branch of your choice in NZ. If you place a sufficient amount, they'll probably waive whatever bank fees that would normally be incurred.

For interest rates, go to http://www.anz.co.nz/ratefee/interest.asp#Section475

You may also take a look at http://www.asb.co.nz
 

neddy

Alfrescian (Inf)
Asset
thanks for the info sam.. you are very helpful.. Cheers!

Another point to note.

If your residential address is outside NZ, you may incur the NRWT. (Non-resident withholding tax)
I think Singaporeans should be 10% as of Oct 2010.

I could be wrong, but it is best to find out in case you are not even be aware of NRWT existence.
 
Last edited:

therockz

Alfrescian
Loyal
not sure that is why must ask mah.. if dont ask how to know? btw thank you guys.

but it is still much higher than in sillypore.. can convinue me why i should live there?

I think we all know you, like 88% of people out there, won't qualify for migration.

But what are the pros of NZ?

1. Yes there is 33% tax, but the minimum wage is 13 bucks, which means that the minimum you take home is 8.50 in cash. That is higher than many jobs in Spore. And spore has CPF which is 35% of your wage as well, and not inclusive of taxes which can go up to 10+ %, and CPF really is the same as paying taxes.

2. You pay 33% taxes but healthcare is free. There is a social safety net with many benefits such as accomodation benefits, unemployment benefits that come up to 800 bucks a month, disability benefits etc etc. Your taxes also gives you an old age pension. Your 33% tax in NZ gets you 1 million times much more benefits than your 35% CPF in Spore.

3. NZ is less crowded. Spore is the most crowded country in the entire history of mankind and it is going to increase in time. In Spore, when you die, you don't even have a final resting space because there is not enough land.

4. Cars in NZ are very cheap. 5k can get you a second hand one. You can have as many cars as you want, the only issue is the parking space. And you can have caravans and drive them for holidays.

5. NZ has more freedom of speech and personal liberty and human rights.

6. NZ has better English speaking environment.

7. NZ has 4 seasons and a better climate. You won't sweat like a dog just by walking 5 mins.

8. NZ has no conscription. You won't have to do 2 years of conscription or reservist.

9. You dont need exit permits to go overseas for just 24 hrs in NZ..or be caned or fined.

10. NZ has a much more laidback culture. Ppl are generally more civilised and gracious.

11. For 150k, you can get a FREEHOLD studio flat in central Auckland. In Sg, you get a 99 year lease 1 room flat with thin walls and lots of noise pollution.

12. Houses are much bigger in NZ.

13. NZ is not a tiny insignificant dot. You won't have to worry about being occupied by your neighbours, ever, unlike in Spore which is constantly under threat from its neighbours until eternity and no matter how high her GDP is, everything can fall in just one fell swoop. Msia can just put fire some artitilery and Spore is flatten.

14. You won't get caned or hanged or fined in NZ for spraypainting a wall or dropping your litter.

15. NZ has better univerisities and education system.

16. You don't have to be a slave or digit in NZ.

Cons:

1. Slow, expensive capped internet

2. Slightly higher cost of living

3. Earthquakes

4. Some discrimination from time to time

etc etc
 
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