If you’ve spent time working or living in New Zealand, or you’re planning to, you might have come across the 183-day tax rule in New Zealand. It’s one of those rules that doesn’t sound like a big deal, but it can significantly impact your tax obligations.
The Basics
The 183-day rule helps determine whether you’re considered a “tax resident” of New Zealand. That doesn’t mean you live here permanently – it just means Inland Revenue (IRD) might expect you to pay tax here, depending on how much time you’ve spent in the country.
How It Works
- If you’re in New Zealand for over 183 days in 12 months, you’ll generally be treated as a tax resident.
- The days don’t have to be consecutive – IRD counts total days within those 12 months.
- Once you hit 183 days, your tax residency status is triggered from day one of those 12 months, not the 183rd day.
Why It Matters
Being a tax resident in New Zealand means you may be taxed on your worldwide income, not just what you earn here. This can affect freelancers, remote workers, digital nomads, expats, and business owners who split time between countries.
It’s Not Just About Days
Even if you haven’t hit 183 days, you could still be classed as a resident if you have a “permanent place of abode” in New Zealand – for example, if you own a home or have close ties here.
Leaving New Zealand?
You’re generally no longer considered a tax resident if you’ve been out of the country for 325 days in 12 months and no longer have a permanent place of abode in New Zealand.
Need to Talk it Through?
This rule surprises many people, especially small business owners, consultants, and remote workers. If you’re unsure how it applies to your situation, book a time here to chat. It’s better to be clear now than surprised later.
NZ Business Coach – helping business owners across New Zealand understand the details that make a difference.
