This brings us to an important point if you earn income in multiple tax jurisdictions: you must consider cross border tax issues, which means you will need to file a tax return both in your country of residence and the other tax jurisdiction(s). In some cases, this means you could be taxed twice on the same income, unless New Zealand has a double tax agreement (DTA) with the other country. Currently New Zealand has DTAs with a number of countries, including Australia, the UK, Singapore and USA.
Obviously not all countries have the same tax rules, and tax paid in one jurisdiction may be more or less than what is required to be paid on the same amount of income in the other country. If the countries involved have a DTA, tax paid in one country is offset against the tax obligations of the other country as a tax credit, and only the difference needs to be paid.Thank you for the incredibly detailed assessment of the improvement discrepancies, all the considerations and the suggested course of action. You've made everything understandable and clear.
In all a good result, thank you very much for all your involvement Maggie, you've been wonderful to work with and certainly made my first home buying rodeo a lot smoother than it might otherwise have been!
Thanks again, I wouldn't be making such informed decisions without you!
- Ben Tong, November 2020
Investing in residential property?
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