Tax and bank accounts

Do yourselves a favour, get yourselfs an IRD (tax) number as soon as possible, and register it with your bank.

Interest earned on your bank account attracts government tax at the same rate as the pay scale, so you will be charged the maximum tax rate on interest (33%) until you register your IRD number.

This will only be applicable to people earning under $38,000 as this is when tax goes from 19.5% to 33%!

Hi Taffy,
That's good to know. Thanks for the info.
Is that $38.000,00 per person? Do you pay tax on your personal income or on your family income?
Thanks for your answer
Regards,
Anita

Hi,

Thats per person, not combined income.

So if you're on $35,000 and your partner is on $35,000 then you will both pay 19.5% as opposed to 33% each.

Taffy

if both myself and the OH have a joint bank account, does the interest on the account get taxed at source?

For example if we get $65k interest a year on savings (with no other income at present) what would the tax on this be and how would it be paid?

River

Hi,

I'm not certain which rate it would be, either 19.5% or 33%, it depends how you get rated by the Inland Revenue.

Tax is deducated automatically from your account each month, and appears as 'Withholding Tax' on your statement. Sounds as though you've done something wrong, when "Withholding" Tax appears on your statement!

Hi Taffy

How do you get an IRD number?

Regards

By going here:

http://www.ird.govt.nz/how-to/irdnumbers/

:icon_biggrin:

Cheers Taffy :icon_lol:

[moggy]

Do kiwis also pay the equivalent of national insurance?

Sort of, you pay ACC contributions, which are smaller amounts than National Insurance.