mGa KuRo-KuRo Ni Ka UrO

Friday, October 14, 2005

NZ Income Tax

Sabi nila there are two certainties in life – death and taxes. Ewan ko kung totoo yon. Death definitely. Pero taxes, di naman lahat ng bansa may tax. Sa Saudi alam ko tax-free and kita mo. Ganun din sa Brunei. Sa Las Vegas din yata ganun din. But in most countries tulad ng NZ lahat ng income may tax.

Dahil di naman ako accountant and definitely not a tax expert, I’ll just give a summary of the income tax rates for individuals in NZ. If you need more information, I suggest you go to the website of the NZ Inland Revenue Department (BIR ng NZ).

Taxable Income

Tax Rate

Up to $38,000

19.5 %

$38,001 to $60,000

33 %

$60,0001 and over

39 %

For example if a person has an annual income of $65,238, his tax due is computed as follows:

$0 to $38,000 @ 19.5%

=

$7,410.00

$38,001 to $60,000 @ 33 %

=

$7,260.00

$60,0001 to $65,238 @ 39%

=

$2,042.82

Total Tax Due

=

$16,712.82

The NZ tax year starts on April 1 and ends on March 31st of the following year. Everything you earn within this period is considered as your income. Some expenses can be deducted from your income and therefore won’t be taxed. These are called rebates. Examples of rebates are:

  • Below $9880 rebate – if your income is under $9880
  • Below $38k rebate – if your income is under $38000
  • Child Rebate – if you are under 19 yrs old and attending school
  • Donations – if you donated $5 or more to any charitable organization
  • Childcare – if you have paid for childcare as a working parent
  • Housekeeper – if you have paid for a housekeeper

For details and the maximum amount you can claim for each rebate, please consult the IRD website. Note that you must include receipts with your claims for donations, childcare and/or housekeeper.

Your total income minus all the rebates will give you your total taxable income. You then use this reduced figure to calculate your tax due.

If you work for a company, meaning you’re not self-employed or does not own a business, your salary is automatically deducted of tax. Your employer takes care of this. At the end of the year, you normally, don’t need to worry about filing any income tax return. However, if you want to claim any rebate and therefore claim a tax refund, you’ll need to fill up a separate form (IR526).You can download the form online, print it, fill it up and submit it to Inland Revenue at the end of the tax year.

Next time, I might write something about how you can avoid paying more taxes legally. Note: Legal po ito. Walang hocus-pocus at walang pandaraya. Pero pagiisipan ko muna at baka mali ang masabi ko at ma-audit pa ako ng IRD.

23 Comments:

  • wow ka-uro, tunay na sweldo mo ba un naipost mo =) idol ka talaga =) hehehe..

    By Anonymous nzhopeful, at 1:56 PM, October 14, 2005  

  • wala po bang balak si helen clark na babaan un income tax rates? pero naisip isip ko lng, kahit mataas un tax rates, nakikita naman kung saan napupunta un taxes.. d tulad dito.. mga buwitre lng ang nakikinabang.. sad truth.. =(

    By Anonymous nzhopeful, at 1:59 PM, October 14, 2005  

  • Malaki nga ano? Sa example mo, lumalabas na more or less 25% ang tax. So kung ang monthly income ay 5.5k, ang take home mo lang ay 4k per month or 1k per week.
    Sabihin nating $500 ang weekly bills (apt. rent, phone, internet, elect, water, food, fuel), may natira pang $500, ok na rin.

    By Blogger Tanggero, at 4:26 PM, October 14, 2005  

  • Just want to point-out na semi-welfare state ang NZ. Kaya yung taxation, paraan para i-transfer ang yaman nga mayayaman sa mahihirap. I think 1 dollar in every 3 goes to welfare. Nakaasar kung malaki kita mo pero on the other hand it's good to see na walang Kiwi ang naghihirap gaya ng talagang mahihiirap sa Pinas (or America for that matter).

    By Anonymous Ivan, at 5:22 PM, October 14, 2005  

  • Ka Uro, hate na hate ko ang laman ng entry na ito (yung tax po at hindi ikaw ha ) - yan ang kumukuba sa amin dito...

    so I instead wish you and your family a safe weekend!

    By Anonymous thess, at 12:48 AM, October 15, 2005  

  • Nakakatuwa yang kasabihang "death and taxes are the only certainties in life." Dati nag-biro ako na isa sa mga pangarap ko maging tax accountant or tax adviser, kasi limpak limpak na kita yan ano.

    Dito sa OZ, recently they adjusted the bracket for taxing assessable income... kaya lang ang adjustment ay pag-widen lang ng range nung income for the highest tax rate, kaya maraming nagreklamo, ang sabi ay ang makikinabang lamang ay ang mga nasa higher income bracket. Ewan ko nga ba kung bakit ganon ang pag-revise nila.

    By Blogger Jovs, at 2:55 AM, October 15, 2005  

  • In Canada, we pay 2 different type of taxes - federal and provincial.

    Here's the link to our provincial tax rates and federal tax rates

    Ang maganda lang dito, kahit mataas ang tax rates, you see where your money goes!

    By Blogger JO, at 2:56 AM, October 15, 2005  

  • What I mean is... the bracket for the highest tax rate was pushed up, giving more benefits to those already earning say $70,000K and above but not to those in the lower brackets.

    By Blogger Jovs, at 2:57 AM, October 15, 2005  

  • fafa KU wala ngang taxes dito sa amin kasi karamihan sa services ay subsidized ng government, tulad ng kuryente, gasolina, tubig. Mga lokal naman ay subsidized din ang pag-aaral hanggang college. Ito ay nagagawa nila kasi mayamang bansa ito at nakikita naman sa kapaligiran kung saan napupunta ang kinikita ng langis. Siguro pag dumating ang panahon na na deplete na ang kanilang black gold yun ang time na magkakaroon na ng taxes (tulad ng bahrain at iba bang karatig bansa nito).
    Nice info ito fafa KU, at least naiinform ang iba nating kababayan na nagpaplano na magpunta dyan kung ano ang kalakaran sa NZ.
    btw fafa ung namang nga commodities tulad ng pagkain, beer, clothes at iba pa, paano naman ang taxes? pag nagpa lipo o nagpa plastic surgery meron din bang buwis na pinapatong?

    By Blogger KaDyo, at 5:47 AM, October 15, 2005  

  • Imagine also the taxes that are being stripped from our monthly salary KU. Not to mention the EVAT that is being shouldered by the public. I really don't mind paying my tax, eventhough it truly hurts my pocket, for as long as we see where it goes. Sadly, it goes to the pocket of corrupt govt officials.

    By Blogger darlene, at 1:31 PM, October 15, 2005  

  • Hi Ka Uro,
    Thanks for this info. Matagal na ho akong nagbabasa d2 sa web nyo. May question lang ho ako, yung bang "tithes" or "offering" sa church ay pwdeng i-classify as "donations" as mentioned doon sa rebates? Dito kasi sa Pinas hindi. TY
    Filip

    By Anonymous Anonymous, at 5:16 PM, October 15, 2005  

  • KU, gusto ko itong pag-explain mo pero sa totoo lang, ayaw ko itong isyu. eto ang papatay sa akin sa pinas kung di ako umalis dun...

    By Blogger Mmy-Lei, at 10:09 PM, October 15, 2005  

  • KU,
    kung yan ang yong income na tinatax mo maganda kita mo lalo na kung hindi mo ka join diyan ang kay jean.
    tawag ako sa yo kahapon paririnig ko sana videokehan namin ng mga pinoy umpisa kantahan mga ingles noong mga may tama mga pinoy song na bikining itim, manila sound tapos bayan ko. nakakatouch talaga pag bayan ko. kahit malagihay talagang feel na feel mo lalo na at sama-sama kayong mga pinoy nasa at nasa ibang bansa (wala kaming paki kahit maay bisistang mga puti na nakatanga lang sa amin.

    By Blogger atoy, at 7:28 AM, October 16, 2005  

  • nzhopeful,
    hindi ko tunay na sweldo yan ha. nakuha ko lang yan sa IRD website. ayoko mag-comment sa tunay kong sweldo, baka lusubin ako ng taxman. nyek!

    wala yatang balak si clark na babaan. dagdagan ang mga benefits yun ang agenda ng labour e.

    tanggerz,
    ok na rin nga. dito kasi the more you earn the more tax you pay. it's a way of redistributing wealth.

    ivan,
    tama ka diyan ivan. kaya lang minsan nakakapika. yung mga nasa benefit akala mo siga kung mag-aasta. e sa mga tulad lang namin na kumakayod nanggagaling ang nakukuha nila. sila di nagtratrabaho pero mas masarap pa ang mga binibili nila sa supermarket.

    thess,
    thank you. alam ko ibig mong sabihin.


    jovs,
    ganun ba diyan sa OZ? people have different points of view kasi with regards to taxes. yung labour govt gusto nila mataas ang tax nung malaki kita para malaki makuha nung mga lower income. yun naman national party gusto bawasan ang tax nung mga higher income to give them incentive for their hard work.

    jo,
    maganda nga diyan sa canada. in fact, siguro kung di kami nakakuha ng residency dito, baka canada kami nakapunta.

    kadyo,
    mataas ang mga tax ng mga liquor at beer at sigarilyo. damit di masyado. di ko alam sa plastic surgery. bakit may balak ka bang magpa-lipo? hahah

    darlene,
    napakahirap nga sa part ng mga middle class sa atin lalo na yung mga fix income earners. kakainis tapos yung mga corrupt na opisyales sila pa ang binoboto ng mga tao sa eleksyon.

    anonymous,
    pwede basta may resibo. ang ginagawa dito may envelope sa church na pwede mong i-cheque ang donation mo. at the end of the year bibigyan ka ng sulat ng parish church kung magkano na-donate mo. pwede mong gamitin yon na resibo para makakuha ng rebate.

    atoy,
    sarap yata ng inuman diyan. o sige yung pinagusapan natin na papasyal kami diyan. hintay lang ako ng murang pamasahe.










    kaming mga kumakayod at nagbabayad ng

    By Blogger Ka Uro, at 12:18 PM, October 16, 2005  

  • ka uro, pahabol na tanong, paano tinatax ang mga bank account? like for example yung interest sa bangko sa mga savings account mo? dito sa pinas, automatic, kinakaltas ng 20% yung interest mo for tax, diyan paano?

    By Anonymous Anonymous, at 11:48 PM, October 16, 2005  

  • off-topic... tagged you! hope it is ok..

    By Blogger bing, at 11:50 PM, October 16, 2005  

  • This comment has been removed by a blog administrator.

    By Anonymous Anonymous, at 5:16 AM, October 17, 2005  

  • This comment has been removed by a blog administrator.

    By Blogger Raquel, at 6:30 AM, October 17, 2005  

  • Ka uro, punta ko kayo kung gusto nyong malaman ang anonymous na yan.

    By Blogger Raquel, at 6:31 AM, October 17, 2005  

  • anonymous,
    about your question on the tax rate for savings account, i'm not really sure. but in my case, the bank deducts 19.4%. when you open a bank account, you fill up a form where you select a tax code to indicate if you have one job, or more. i think if you indicate one job, 19.4% will be the tax rate. if you don't indicate any tax code, the rate can be as high as 40%.

    By Blogger Ka Uro, at 8:45 AM, October 17, 2005  

  • Ka uro, i guess you mean the bank deducts 19.4% from the interest earned or 40% from the interest earned, right?

    I think that is better, simplified na kagaya dito sa pinas. Automatic kaltas na.

    Sa Amerika kasi, complicated pa, you have to put your interest in your income tax return pa.

    Salamat

    By Anonymous Anonymous, at 2:40 PM, October 17, 2005  

  • it's good to know how taxes are being paid there..mas ok dyan, dito kasi, they dont have a flat rate too..pero for example, if you have >$60,000, that would mean you'll have to pay 39% of it, from $0 to the last dollar..

    i've written about the tax system here, check it out..

    Tax Me Not

    By Blogger Analyse, at 3:34 AM, October 18, 2005  

  • Thanks a lot Ka Uro sa reply nyo sa query ko.
    Off topic lang, may mga Baptist churches ho ba dyan sa Auckland?
    TY uli.

    Filip

    By Blogger Filip, at 3:03 PM, October 24, 2005  

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