I spent several months working for a company in another country during the tax year but remained a New Zealand tax resident. I paid tax overseas on that income. Do I also have to declare and pay New Zealand tax on it?
New Zealand tax residents are generally taxed on their worldwide income under the Income Tax Act 2007, so if you remained a New Zealand tax resident during the period you worked overseas, that foreign-sourced income is likely to be taxable here as well. However, New Zealand has double tax agreements with many countries, which can determine which country has the primary right to tax certain income and can provide a foreign tax credit mechanism to reduce or eliminate double taxation, so you may be able to claim a credit in New Zealand for tax already paid overseas on the same income, up to the amount of New Zealand tax payable on it. Your residency status is central to this analysis, and rules about ties to New Zealand, days present and permanent place of abode can be complex, so get specific advice from a tax adviser familiar with international tax and any relevant double tax agreement.
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