New Zealand

Individual - Foreign tax relief and tax treaties

Last reviewed - 14 December 2020

Foreign tax relief

A tax credit is available on the tax paid on foreign-sourced income derived by a resident (up to the level of New Zealand tax payable). In some cases, foreign tax credits will be limited to the lesser of the actual overseas tax paid on the overseas income or the New Zealand tax applicable to the overseas income.

Tax treaties

Information about countries with which New Zealand currently has DTAs and Tax Information Exchange Agreements can be found at http://www.taxpolicy.ird.govt.nz/tax-treaties#dtas.

Foreign Account Tax Compliance Act (FATCA) 

The United States (US) Treasury and the New Zealand government have entered into an inter-governmental agreement (IGA) for the implementation of the FATCA rules, which came into force on 3 July 2014. The FATCA rules require all global financial institutions that are not exempted, including New Zealand financial institutions, to register with and report  to the US Internal Revenue Service (IRS) regarding certain financial accounts held with them.