donnynz

Hi,

Does the tax on your NZ savings account relate directly to what you earn, or to what you have in the bank?

For example, if I earn over $80k, will my savings be taxed at a rate of 39%?

What if my wife doesn't earn anything and the savings are in her name?

Thanks for any help!

sarahw

You pay tax on your earnings and any interest earned on your savings. The current tax rates are on http://www.ird.govt.nz/how-to/taxrat...etaxrates.html

but this is due to change from Oct

Maz1

Put it in your wifes name. But make sure you provide her I R number to the bank.

donnynz

Thanks. So, if we put them in my wife's name we will pay the lowest rate on any interest?

NakiMan

If I understand your question correctly ----

You will pay income tax on your earned income at rates on a sliding scale dependent on how much you earn. See the link in the previous post.

On your interest or share dividends you will pay "Withholding Tax" very similar to investment tax in the UK

If your investment income is less than $38,000 this will be at 19.5% compared with 20% (?) in the uk

Higher investment incomes have higher rates (Lucky you !!)

See

http://www.ird.govt.nz/business-inco...dividends.html

for full details

NakiMan

Having looked at the IRD site again, its not clear if the $38000 band refers to Investment income alone, or on TOTAL (Earned and Investment) income.

As the bands for withholding tax correspond to those for Income tax, I suspect they do !!!

sarahw

I believe it's total income

Maz1

It does depend on the amount in the savings, eg how much interest will be earned over the year. If our account was in both mine and OH name then they would also take into consideration his earnings. So the savings is MINE all MINE.

donnynz

I suppose I'll have to trust the missus then and get them in her name

eddie_nz

keep it in the UK and in an isa

or premimum bonds if its too much for isa's