2005 · 33 citations · 0 references
Public AffairsEconomicsPublic PolicyInternational TaxationTax PolicyTaxationIncome ShiftingIncome TaxationIndirect TaxationTax ReformTax ShiftingNonresident Income TaxesNonresident TaxationResidence-based Tax IncidenceResident Income TaxesSource-based Tax IncidenceTaxation Of Cross-border Income
Until the early 1990s New Zealand policy was to tax residents on their worldwide income and non-residents on income derived from New Zealand. The policy changed slightly in the 1990s when it became clear that taxing non-residents on income derived in New Zealand was a disincentive to foreign investment. Thus, since the early 1990s the focus of successive New Zealand governments has moved towards residence taxation and away from source taxation. However, with the intention of maintaining a strong tax base New Zealand has continued to tax a good deal of income derived in New Zealand by non-residents in a variety of ways.