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Leaving New Zealand Guide — Tax Obligations, Exit Rules, and Departure Procedures

the tax obligations when leaving New Zealand. The guide covers the departure procedures with the IRD, the final tax return requirements, the deemed disposal of the investment properties, and the transition to the non-resident tax status.

Departure Procedures and Final Tax Return

When leaving New Zealand, the taxpayer must: (a) notify the IRD through the myIR portal of the departure and the new overseas address, (b) file the final tax return up to the departure date, (c) apply for the correct non-resident tax codes for the New Zealand-sourced income (the rental property, the dividends, the interest), and (d) consider the implications of the transitional resident rules. The transitional resident exemption applies for the first 48 months of the non-residence — the foreign income (the overseas salary, the foreign investment gains) is exempt from the NZ tax during this period. See our Non-Resident Tax Guide → for the ongoing obligations.

Deemed Disposal and Ongoing NZ Assets

The taxpayer is treated as deemed to have disposed of the personal property (the shares, the investments, the business assets) when the non-resident status commences — the capital gains are recognised at the departure, though the NZ has no CGT so the gain is generally not taxable for the casual investors. However, the bright-line test continues to apply if the residential property is sold within the bright-line period. The New Zealand-sourced income (the rental income, the dividends, the interest) remains taxable in New Zealand at the non-resident rates. The non-resident withholding tax (NRWT) applies at the rates of 10% to 30% depending on the income type and the tax treaty. See our Tax Treaties Guide → for the treaty rates.