Pensions from back home.

[Tribesman]

Under the new law in N/Z . I was wondering if the state pension received from home would be taxed in N/Z .Does it come under the new four year Tax exemption that was brought in recently for immigrents.

[MotherBear]

I hadn't really considered this, so I'll have to look into it more thoroughly. Here's some reading about pensions including a form for claiming relief from double taxation so I guess somewhere along the line, someone will be looking for some tax from your pension.

Social Security Arrangement between UK and NZ . This covers all aspects of social security benefits etc. inc. state pension.
Information for those who receive a social security pension from outside NZ .
Forms for claiming relief from double taxation on pensions etc.
Another form for tax relief
Overseas private pensions .
Forms and Guides from the NZ side of things.

I haven't sorted through all these yet to know what's what.

[MotherBear]

While we're on the subject of pensions, if anyone would like to sign the on-going petition against discrimination of British State pensioners who retire in certain overseas countries (NZ in this case) and won't get any annual increases in their state pension, here's the link . Don't know if it'll do any good but has to be worth a try. We've faithfully paid our NI contributions and done everything else the same as those who live in countries who will get the annually uprated pensions, yet we're being penalised purely because of the country we've chosen to retire to.

British State pensions are paid out of the National Insurance Contribution fund which, the Government's own Actuary Department stated in early 2006, has a surplus exceeding current requirements of over £30 billion and growing.

[Burgundy21]

Does it come under the new four year Tax exemption that was brought in recently for immigrents.

What's this? If/when we work do we go tax free for a certain time?? Sounds generous to me!

[MotherBear]

No, it's just that there's some kind of amnesty where new migrants can bring in funds from their 'home' country tax-free for 4 years. It doesn't mean you can work tax free in NZ, unfortunately. I'll have to find something on this to post on here.

OK, here it is .

Just a snippet, as there's more in the link........

Temporary tax exemption on foreign income for new migrants and returning New Zealanders

From 1 April 2006, people becoming tax residents in New Zealand may qualify for a temporary tax exemption on some of their foreign income. This temporary tax exemption is available to those who qualify as a tax resident in New Zealand on or after 1 April 2006 and are new migrants or returning New Zealanders (transitional residents) who have not been resident for tax purposes in New Zealand for at least 10 years prior to their arrival in New Zealand.

The exemption can only be granted once in a lifetime.

The exemption
The temporary tax exemption for foreign income is for four calendar years (up to 49 months). The exemption starts on the first calendar day of the month you qualify as a tax resident in New Zealand and is valid until the last calendar day of that month four years later. For example:

You qualify as a tax resident in New Zealand on 22 April 2006 and have one or more types of foreign income that are temporarily exempt for taxes in New Zealand (see list below). You are eligible for the exemption counting from 1 April 2006 until 30 April 2010, which effectively is 49 months.

[MotherBear]

Tom, from the same link above, here's a list of what's temporarily exempt from being taxed.

Types of foreign income which are temporarily exempt from tax in New Zealand:

Controlled foreign company income that is attributed under New Zealand's Controlled Foreign Company (CFC) rules
Foreign investment fund income that is attributed under New Zealand's Foreign Investment Fund (FIF) rules (including foreign superannuation)
Non-resident withholding tax (for example on foreign mortgages)
Approved issuer levy (for example on foreign mortgages)
Income arising from the exercise of foreign employee share options
Accrual income (from foreign financial arrangements)
Income from foreign trusts
Rental income derived offshore
Foreign dividends
Foreign interest
Royalties derived offshore
Income from employment performed overseas before coming to New Zealand, such as bonus payments
Gains on sale of property derived offshore (held on revenue account)
Offshore business income (that is not related to the performance of services).

[Tribesman]

It looks like pensions are not mentioned in the above lot. Or mayby the foreign superannuation. I wonder does pension come under that?/\

[MotherBear]

In NZ a pension is referred to as superannuation, so I was wondering if it was included in that. I just didn't understand the NZ Foreign Investment Fund bit.

[Tribesman]

Originally Posted by MotherBear

In NZ a pension is referred to as superannuation, so I was wondering if it was included in that. I just didn't understand the NZ Foreign Investment Fund bit.

Have to be 10 years resident in nz and five of those must be after 50 years old to get nz pension. But in any case one can have their home pension sent to them in nz. if your not 65 when you get their and not enough credits up , one can pay addition credits to qualify for full pension. Which means if both partners were eligable to claim pension from back home, it would be hefty enough when currency taken into account, even after 19.5% stoppage tax in nz. P/S i am still trying to get an answer on this new tax law. Emailed work and income and goverment dept. to get to the bottom of it. because that woul make a big difference. Will post when i find out.

[Tribesman]

After many email to IRD i have finally got an answer, so now i know for sure Tax is payable on social security foreign pension , but the four year exemption applies to foreign private pensions/annuities. See the followin link to disclose all. http;//www.ird.govt.nz/technical-tax/tib/