(Source: Ernst & Young)
The taxation of an executive’s investment income can be
complicated. New Zealand has tax treaties with 26 countries, including its most common trading partners like Australia and the US. But departing expat executives must realise that there are tax requirements on them at the time they exit, during their absence and on their return.
In extreme cases, executives leaving some countries have found themselves locked in jail. In fact, it’s mandatory in some Asian countries to prove the right amount of tax has been paid before permission to leave the country is granted. Here are some of the more obvious considerations:
? Are you going to higher or lower tax rate country?
? What is the rate of pay in $NZ terms?
? Is there capital gains tax where you are going?
? Timing of bonuses before or after leaving?
? Timing departure halfway through the tax year to achieve lower tax rate.
? Residential status if properties in New Zealand are retained?
