At Odyssey Accountants, we understand the distinct challenges and opportunities that come with your fast-paced career. From handling variable income streams or navigating complex international tax rules, we understand how overwhelming it can be to stay on top of your finances. That’s where we step in.
At Odyssey, we specialise in working with digital nomads and would love to support you on your journey.
Below are some common topics that we help to our clients navigate
Tax Residency.
A person who is a tax resident in New Zealand will be taxable on income even if they earn this income from overseas (outside NZ).
Therefore, it is likely expected income will be reported as income to the IRD regardless of the countries source or even when you’re outside of New Zealand. It is also important to note that being a NZ tax resident is different from immigration status. For example, a person who has a visa for NZ but is not a citizen, is likely to be a tax resident, if they meet the threshold. In simple terms, this threshold usually means when the first of these happens:
1. they have a permanent place of abode (eg: a house, rental, flat share);
2. have not been away from New Zealand for more than 325 days in any 12-month period.
If you meet the above, you are a tax resident and are liable for tax.
Keeping good records.
You should keep records of all your income and expense receipts and maintain these for the last 7 years in the event of audit. The IRD state that it is important for online content creators to keep good records. Failing to keep good records is risky. In some cases, failing to keep good records can result in Inland Revenue:
- treating a person as having more income than they actually do (for example, if their income needs to be determined based solely on deposits in their bank account or assets they have acquired);
- disallowing deductions for expenses a person could have claimed if they had kept a record of their expenses; or
- imposing penalties and use of money interest for underpayment of tax.
Expenses.
The following are examples of expenses that could be incurred by an Digital Entrepreneurs as part of their work:
Goods and Services Tax – GST.
GST is a tax in New Zealand that is charged on the supply of goods and services. Digital nomads are usually have a service or providing a product. A digital nomad, generally only needs to register for GST if their total income exceeds or is expected to exceed $60,000 in a 12-month period. Once the threshold of $60,000 is met, a digital nomad will likely be required to register for GST and file GST returns as part of their accounting requirements. In many cases, New Zealand tax residents who are digital nomads do not provide goods and services to New Zealand customers, and therefore are likely to have zero rated good and services. We at Odyssey offer GST services to help you understand this and undertake your GST returns.
When are Tax returns due?
If you do not have a tax agent, you will need to file your tax return by the 7th of July. However if you use Odyssey Accountants as your tax agent we have an extension of time, this will give you the benefit of working with Odyssey and completing this with additional time if required.
Why use Odyssey as your Accountant?
You can perform your own returns, however it can certainly be a minefield of complexity, and without expertise, there is risk that it will not be performed correctly or you’re missing out on tax benefit opportunities.
At Odyssey Accountants, we understand the unique challenges and opportunities that accompany your Digital Nomad pursuit. That’s where we come in. We work with entrepreneurs like you and know the common pitfalls that they face. We also have expertise in ensuring digital nomads are taking advantage of possible benefits that is available to them, particularly through the complex areas of expense deductions.
You can book a free informal video or phone call here: Book a Meeting