Taxation and overseas benefits and pensions
Clients who wish to know whether their overseas benefit or pension is liable for New Zealand income tax should be referred to Inland Revenue.
Tax liability
Generally a client will be liable for tax if they are receiving New Zealand Superannuation and the overseas benefit is being paid direct to their own bank account. They will need to provide details of the overseas pension payments from their bank statements.
Exemption from tax
If a client is receiving any other New Zealand benefit or pension and the overseas benefit or pension is being deducted from the New Zealand benefit, the overseas benefit or pension is generally exempt from tax.
The client must provide details of the overseas benefit or pension to Inland Revenue who will decide whether the overseas benefit or pension is liable for tax.
Special Banking option
If a client's overseas pension is paid to the special banking option account and they are getting a New Zealand Superannuation or Veterans Pension, the tax deducted by SWIFTT will cover their New Zealand Superannuation and overseas pension tax liability.
