New Zealand income tax act only taxes tax residents on their worldwide income irrespective of the source of that income and taxes non-residents only on income which is derived from New Zealand.
According to s YD1, individuals are New Zealand residents if they:
• Have a permanent place of abode in New Zealand; or
• Are in New Zealand for more than 183 days in any 12 month period; or
• Are away from New Zealand in the service of the New Zealand Government.
Individuals cease to be New Zealand residents if they:
• Are absent from New Zealand for more than 325 days in any 12 month period; and
• During that period of absence have at no time a permanent place of abode in New Zealand; and
• Are not absent in the service of the Government of New Zealand.
Companies are resident:
- If they are registered in New Zealand
- Permanent place of establishment in New Zealand