Covisory Commentary - Returning EX-Pats watch for Tax Traps

Kiwis coming home can get caught in some nasty tax traps

We have seen the wave of kiwis returning home from overseas and expect it to continue for some time yet.

One trend which returning kiwis need to be aware of is when typically mum and the kids return, but dad stays overseas often earning large tax free income in places like Dubai etc.

In these cases even if dad does not move back home, he will likely be regarded as having a permanent place of abode in NZ given that the family are here, usually living in a home owned by them or a trust for them. This would see the dad's tax-free overseas income become taxable in NZ from when the family returns, even if they are transitional tax resident.

Also if relevant double tax agreements are unlikely to provide much relief.

So beware and get advice before you get on the plane. It's too late when you work it out when you are back here in isolation.

Why talk to us
1. Covisory are specialists in New Zealand and international tax and trusts. We regularly work on these types of engagements dealing with people like you.

2. We can work equally with your existing offshore advisors or we have our own extensive international network to tap into.

3. We can also handle your New Zealand accounting and the nuances of it as it applies to both your New Zealand assets and income, and your international tax complications.

4. We also have strong onshore links to all services that you will require such as immigration, banking, real estate, insurance, lawyers etc.

Above all, we offer proactive and practical advice.

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