Income earners must pay several other taxes beyond income tax. These include:
- Goods and Services Tax (GST)
- Resident Withholding Tax
- Excise Tax/Duties
Property owners and commercial property leasers must also pay local government rates.
Goods and Services Tax (GST)
GST is applied to all goods and services sold in the New Zealand economy. It is charged at 12.5% and most businesses pass the cost on to consumers. Special rules apply for businesses and their recording of GST in their activities.
GST - Inland Revenue Department website
Resident Withholding Tax
Generally, resident withholding income is interest paid on money lent, interest earned on investments, and savings and dividends paid on company shares. Withholding tax changes according to the kind of resident withholding income that is earned.
People need to declare to their bank how much their annual earnings will be so that the bank can apply the correct level of resident withholding tax to the resident withholding income earned. Resident withholding tax rates are the same as the income tax rates. The difference is that resident withholding tax is charged at a person's highest tax rate.
Resident Withholding Tax - Inland Revenue Department website
Excise Tax / Duties
The government applies this tax to specified goods such as alcohol, cigarettes and fuel.
Local Government Rates
Rates are a property tax. They are set by the regional council and the district/city council in which you live, and are used to pay for services that the councils provide.
