Savings and Tax
#1
Forum Regular
Thread Starter
Joined: Apr 2007
Posts: 62
Savings and Tax
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!
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!
#2
Forum Regular
Joined: Nov 2005
Location: Vale of Glamorgan
Posts: 268
Re: Savings and Tax
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
but this is due to change from Oct
#3
Forum Regular
Joined: Oct 2006
Location: Albany, North Shore
Posts: 298
Re: Savings and Tax
Put it in your wifes name. But make sure you provide her I R number to the bank.
#5
Enjoying retirement
Joined: Jun 2008
Location: Rural Taranaki
Posts: 320
Re: Savings and Tax
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
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
#6
Enjoying retirement
Joined: Jun 2008
Location: Rural Taranaki
Posts: 320
Re: Savings and Tax
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 !!!
As the bands for withholding tax correspond to those for Income tax, I suspect they do !!!
#7
Forum Regular
Joined: Nov 2005
Location: Vale of Glamorgan
Posts: 268
Re: Savings and Tax
I believe it's total income
#8
Forum Regular
Joined: Oct 2006
Location: Albany, North Shore
Posts: 298
Re: Savings and Tax
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.
#9
Forum Regular
Thread Starter
Joined: Apr 2007
Posts: 62
Re: Savings and Tax
I suppose I'll have to trust the missus then and get them in her name
#10
Forum Regular
Joined: Jun 2008
Posts: 171
Re: Savings and Tax
keep it in the UK and in an isa
or premimum bonds if its too much for isa's
or premimum bonds if its too much for isa's