IBBZ Accounting

Chartered Accountants & Tax Specialist

 

Useful tips for Small Business

General update by IBBZ Accounting on latest tax news, business growth and technology tips.

Overseas tax credits and foreign income tax treatment

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If you are a New Zealand resident for tax purposes, you will be taxed in New Zealand for all of your “worldwide income”. This includes income derived from New Zealand and from other countries.

Overseas income also called it as foreign sourced income. Section BD 1 subsection 4 of ITA 2007 describes the meaning of foreign sourced income as

An amount of income of a person is non-residents’ foreign-sourced income if—

(a) The amount is a foreign-sourced amount; and

(b) The person is a non-resident when it is derived; and

(c) The amount is not income of a trustee to which section HC 25(2) (Foreign-sourced amounts: non-resident trustees) applies.

Your foreign sourced income may include:

  • An amount of interest you have earned from funds in off shore bank accounts.
  • Rental income
  • Salary and wages paid both by New Zealand and offshore companies.
  • Foreign pensions.

If you are receiving foreign income which is also taxed in another country, you may be entitled to tax credit for the tax you already paid. The available tax credit is limited to the lesser of the tax:

  • Payable in New Zealand on the overseas income, or
  • Paid offshore.

If you are tax resident in New Zealand and in another country that means you are subject to tax law of both the countries.

If both countries are taxing their residents on worldwide income then you will be charged tax twice on same income. Double tax agreements (DTAs) have been negotiated between New Zealand and many other countries to decide which country has the first or sole right to tax specific types of income. Section BH 1 of ITA 2007 explains DTAs.

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Saurav Wadhwa is a Principal Accountant at IBBZ Accounting Limited


 


Saurav Wadhwa 427x640


Saurav has 15 years of practical experience in tax & accounting services. He is qualified both in law and accounting. Saurav has worked in various tax & accounting specialist roles for large corporates in New Zealand. He loves to work with Small Businesses.


His key focus is on:



  • Tax advisory for small and family operated businesses on a wide range of taxation issues.

  • Legitimate tax saving structures.

  • Advising on range of new business issues.

  • Ensuring business growth is attained.

  • Effective cash flow planning.


Blend of skills in Tax laws and accounting, makes him perfect advisor for small businesses and individuals like you. Saurav understands how to safeguard your business from creditors risk, maximise the business growth and pay low taxes. He can be your good strategic and business partner. He is of a friendly nature and easily approachable.


Awards



2014 IBBZ Accounting won the award of Best Small Business 2014. 


2015 Saurav won the award of Best Accountant of the Year.


2017 Saurav was appointed as a committee member to New Zealand Public Practice Board of CPA Australia. 


2018 CPA Australia filmed Saurav Wadhwa and IBBZ Accounting for their marketing campaign to showcase successful accountants in New Zealand Public Practice.  


2018 IBBZ Accounting was Finalist in Westpac Auckland Business Awards: Strategy and Business Planning 2018


 


News Paper Articles.


Sunday Star Times -Fairfax Media -12-08-2018


InTheBlack Aug 2018 issue - CPA Australia In Practice Publication 



He can be contacted on saurav@ibbz.co.nz  or 09 272 8050

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Guest Tuesday, 18 December 2018