If you have a student loan, use a tax number that asks your employer to deduct your refunds. If the amount you receive from NZ Super is higher than what you earn on your wages or salaries, then this is your main source of income. Your NZ Super tax number is M unless you have a student loan. If you have a student loan, your tax identification number is M SL. In any job that works for a salary/salary, your employer will give you an IR 330 form to fill in your name, IRD number and tax number and tick the appropriate selection for your eligibility to work in New Zealand, usually to indicate that you have a valid work visa before signing and dating. Use New South Wales tax laws if you are a recognised seasonal worker or if you hold a work visa as a foreign crew member of a vessel fishing in New Zealand waters. If you feel that you are paying too much or too little tax, you can apply for special tax legislation – for example, if you receive NZ Super and other income, or if you receive a foreign pension taxable in New Zealand. The good news is that it is a common misconception that people pay a higher tax rate when they get a secondary tax law. New Zealand`s tax and PAY system is designed to tax employees at the correct rate. We have a progressive tax system that ensures that individuals pay a higher tax rate if they earn more. Our current tax rates for individuals are as follows: Taxpayers in New Zealand must complete a tax return (Ir 330 form) when they take up employment. It is important to store the right data here, as the amount of the tax is based on the information provided.
The income tax code for most employees is Mr. If you are a New Zealand resident and have an income between $24,000 and $48,000, your tax number is ME. If you have a student loan, you must use a main tax number that includes “SL” unless you have a refund deduction exemption. IRD has codes for your secondary income source such as SB, S, SH or ST, depending on the amount of income. There are also codes such as WT for sedular payments, CAE for the income of casual workers in agriculture, EDW for workers` income on election day, and STC for a special tax law, among others. Use the CAE Tax Identification Number if you are doing occasional farm work. Tell your employer or payer what your code is, otherwise you will be taxed at the highest non-declaration rate of 45%. You will need a special tax certificate and will need to attach a copy to form IR 330. The tax identification number is STC. If we determine that you are using the wrong tax identification number, we will ask your employer or payer to change it and notify you. We do this to prevent you from being taxed more than you should during the tax year or to avoid receiving an invoice at the end of the tax year.
Talk to us if you disagree with our decision to change your tax legislation. STCSTC for a special tax law. This is a tax rate that suits your personal situation. It generally applies when the use of other tax laws results in an excessive or insufficient deduction of tax. You must apply for and obtain approval from IRD before you can use it. If you do not fill out this form with the right IRD number and the right tax identification number, you may be taxed much more than necessary. No one needs to cut their travel money! Example: Brad`s main income comes from his father`s coffee shop work. He earns $38,000 a year.
He also has a second job as a kitchen assistant and earns $8,000 a year. For the second job ($8,000), he should use S as the tax code. If he has a student loan, he would use S SL. You use the tax identification number “M” if you meet a combination of the following criteria: This tax number applies to independent contractors, not employees. Refer to the list of contractor work types on page four of the IR 330 form to complete your payment activity for planners on the first page of the IR 330 form. The tax legislation is WT. If you receive NZ Super, you can change your tax legislation through the Department of Social Development website. There are a few other tax legislation options for certain professions in New Zealand that may well apply to people on working holidays, especially if they work for a salary in agriculture. These are as follows: you need to calculate your tax number for each source of income you receive.