Working overseas and paying New Zealand tax on earnings

A client applying for Supported Living Payment can be considered resident and present in New Zealand during periods of overseas employment when their employer (or other relevant person):

• deducted PAYE or source deductions from their wages and
• paid the deducted amount to Inland Revenue New Zealand

The period overseas that the client was considered resident and present can be used towards the 2 years residence requirement for Supported Living Payment.

A partner or any dependent child who was with the client while they were working overseas can also be treated as resident and present in New Zealand for the same periods.

If the client has a child born outside of New Zealand during the period they were working overseas, the child is deemed to have been born in New Zealand.

The residential qualifications do not apply to people who are self-employed and working overseas.

Clients should provide evidence of the periods they were employed overseas, and PAYE or source deductions paid to Inland Revenue in New Zealand during these periods.

If the employer (or other relevant person) has deducted the tax but failed to pay it to Inland Revenue New Zealand and the client did not contribute to the employer's failure to pay the tax, the period of employment overseas can still be regarded as residence and present in New Zealand.

Note if any person leaves New Zealand while getting a benefit, and returns to take up ordinary residence in New Zealand at any time within 5 years, they are not required to meet the residential qualifications for the same benefit type.