Changing your tax code in New Zealand is a straightforward process, but it's important to make sure you have the right information and use the correct form. To change your tax code, you must complete an IR330 tax code return form. This form provides the necessary information to determine the appropriate tax code for your situation. Here's a step-by-step guide on how to do it. First, you'll need to download, print and complete the IR330 form from the Inland Revenue (IRD) website.
Once you've filled out the form, give it to your employer or to Work and Income. If you're changing from a custom tax code to a standard tax code, you'll need to complete the “Change Tax Code” form. It's important to let the IRD know right away if your tax code has changed, as this may affect the amount you receive for your student subsidy. If you're unsure of which tax code applies to your situation, use the “Tax Code Finder” on the IRD website or consult this flowchart. If you don't fill out the form with the correct IRD number and tax code, you could end up paying much more taxes than necessary. There are also a few other tax code options for specific occupations in New Zealand, which may apply to people who work on vacation, especially if they work in agriculture for a salary. If you have a custom tax code, you must renew it with Inland Revenue at the end of each financial year.
You'll receive a letter through MyIR when it's time to renew your custom tax code and you can complete the online form. Tax codes are lettered codes that must be included on the Department of Internal Revenue (IRD) tax code (IR 330) return form, which your employer must give you when you start a new job. It's important to use the right tax code for salaried work in New Zealand, as not doing so could result in paying more taxes than necessary. We'll look at the main tax codes that normally apply to people who work, are on vacation or who travel with a backpack in New Zealand. If you don't renew or change your custom tax code before the end of the financial year, your tax rate will default to 45% on April 1.
