NZ Tax Services for US Migrants and Expats

US expats and migrants who are tax residents are required to return overseas sourced income unless they qualify for the four-year foreign income exemption (i.e. transitional residency status – find more information here

However, there are two exemptions to the four-year foreign income exemption rule, being foreign employment and foreign personal services income. This means if the US expat/migrant continues to receive foreign employment or personal services income after arriving in NZ, they may still need to return this income in their income tax return.

Further, the income tax treatment for overseas sourced income can be different to the income tax treatment of sourced income. We list out some examples below.

- Foreign dividend may be taxed under the foreign investment fund rules
- Foreign superannuation withdrawal may be subject to the foreign superannuation lump sum withdrawal rules
- Interest limitation does not apply to properties situated outside

If overseas...