How will I pay tax?

Most people pay taxes as they earn their income.  Employers deduct tax on salary & wages while banks & financial institutions deduct tax on interest. 

You will need an Inland Revenue Department (IRD) number to pay your taxes. 

What is an IRD number?
An IRD number is a unique identification number from Inland Revenue - and it will last you your whole life.

Your employer and your bank will need your IRD number to take out the correct amount of tax from any money you earn.

 

Getting an IRD number

  1. Download an IRD number application - individual (IR595) form or freephone IRD on 0800 227 774 and IRD will send you one.

  2.  Fill in the form and take it along with current supporting documents to an IRD appointed verifier: 

    The normal process is for all applications to go through NZ Post or AA for verification of the documents.  Once they have done this they send the application to Inland Revenue to allocate the Inland Revenue number.   The Inland Revenue numbers are issued within 8-10 working days.  

     The requirement is to provide one original and one legible photocopy of one document from Category A and one from Category B.  A list of acceptable documents for these categories are found below.

     If a person is unable to provide a combination of documentation from Categories A and B they need to provide any of the documents listed in Category C1 as well as a document showing a photo of them.  If a customer is using a C1 document, they must come into an Inland Revenue office. They do not need an appointment; however there may be a wait during periods of high demand.

     The last option is to make an appointment for an interview with Inland Revenue and bring along a Category C2 document.  IRD offices are at  224 Cashel Street.

     Category A documents

    ·       Full New Zealand birth certificate issued on or after 1 January 1998. Birth certificates issued after 1 January 1998 carry a unique identification number. If you hold a birth certificate issued before 1 January 1998, and wish to hold a birth certificate with a unique identification number, contact the Department of Internal Affairs

    ·       New Zealand passport (please photocopy the pages showing photo, name and specimen signature)

    ·       Overseas passport with New Zealand immigration visa / permit (please photocopy the pages showing photo, name, any pages showing current work, visitor permits, or residency documentation and a specimen signature) or call Inland Revenue on 0800 227 774 for exempt list

    ·       New Zealand emergency travel document

    ·       New Zealand firearm or dealer's licence

    ·       New Zealand refugee travel document

    ·       New Zealand certificate of identity (issued by Department of Labour or Department of Internal Affairs)

    ·       New Zealand citizenship certificate

     Category B documents

    ·       New Zealand driver licence

    ·       New Zealand 18+ card

    ·       New Zealand student photo identification card

    ·       A letter confirming registration as a student in New Zealand (if this document is used you must provide a document from Category A that contains a photo)

    ·       An "offer of employment" letter from your employer, on their company letterhead (if this document is used you must provide a document from Category A that contains a photo)

    ·       International Drivers' Permit (issued by a member country of the UN Convention on Road Traffic)

    ·       Overseas Drivers' Licence (accompanied by an English translation completed by an LTNZ authorised translator, if not already in English)

     

    Category C1 (no appointment)

    • Military or Police identity card (overseas cards are acceptable)
    • Overseas drivers licence or permit (with a translation if required and other photo identification if not included)
    • New Zealand photo employee card - must include photo
    • Confirmation of permit status (with other photo identification)
    • Enduring Power of Attorney in relation to Property (under the New Zealand Protection of Personal and Property Rights Act 1988).

     Category  C2 (appointment required)

    • Utility accounts
    • Credit cards and statements
    • Bank cards and statements
    • Rates demands, council or local body
    • Other photo identities
    • Other documents that may assist in the verification process.

Whats Tax is a useful website for basic information about income tax, tax rates and getting an IRD number. 

 

If you have a family, you may also be eligible for tax credits to help you with your living costs.  Check out working for families tax credits.