That's what IRD said!
- Jaime
- Jun 12, 2017
- 2 min read
I made a phone call today to IRD just to double check on tax and those kinds of money matters. While on the JET program, you will of course be taxed in Japan for the income you earn on JET, but I just wanted to quickly make sure that I wouldn't be taxed again after coming back to NZ - this is mainly because my dad was double taxed when he worked in Hong Kong for a while.
In short, IRD explained that - no, I will not be double taxed, and no, there is nothing I need to really do before leaving NZ except perhaps notifying IRD of my departure date (and even that can be optional because they will have that information from Customs sooner or later). The only thing I need to worry about in terms of working and earning income overseas, is when I come back from Japan and having to declare my income. But that's it!
I had read online on another blog that you needed to apply for "non tax resident" status, but the IRD staff on the phone explained that I don't need to do this, and that in fact that IR886 form is not to apply for non-tax residency, but it's actually more for IRD and yourself to check what your tax status is if you are unsure.
The other general advice that IRD will give you is:
1. To understand your Student Loan repayment obligations (I have already payed mine back because I didn't want to worry about this! Plus all that overseas based borrower interest is just a huge burden I didn't want to deal with).
2. And if you were working before going on JET: to file a tax return before you leave if you want - this is mainly because our departure date in 2017 was on the 30th July, sitting on the borderline of the new financial year. This seems to be more just for if you want to have the tax refund done before you leave, otherwise it isn't a compulsory thing you HAVE to do.
All in all, I found it best to just call IRD and ask them directly about tax matters, or any student loan worries you might have. This was more clarifying and easy to understand, rather than reading different things online and trying to make sense of it all.
(Also I am just personally bad at understanding things related to tax and the like! So if you're like me and have no idea how these things work, call IRD - their staff are lovely)
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