In New Zealand the Inland Revenue Department has issued an “interpretation statement” on tax residence. This is an update to previous guidance from 1989. The new statement takes effect from 1 April 2014 and includes residence criteria for individuals, companies and trusts. This is of interest to expatriates and their families in New Zealand and could also be important for employers.
The determination of residence is important in establishing the liability of an individual to income tax. The main criteria for deciding the New Zealand residence position of individuals are the concepts of “permanent place of abode” and the “permanent home”.
