Declaring Untaxed Income in New Zealand: What You Must Know

🔍 When Do You Need to Declare Income?

According to the IRD, if you have more than $200 of income not taxed at source during the tax year (1 April to 31 March), you are required to file an Individual Income Tax Return (IR3) [IRD Source – IR3 Guide 2024].If all your income comes from salary or wages with PAYE (Pay As You Earn) already deducted, and you’re using the correct tax code, the IRD will automatically assess your tax position, and you may not need to file a return.

📌 What Types of Income Must Be Declared?

You must declare income if it meets both of the following conditions:

• It was not taxed at source, and

• The total untaxed income is more than $200 per tax year

Common examples include:

• Self-employment and contractor income (e.g., rideshare drivers, tradespeople, freelancers)

• Rental income (including from Airbnb or long-term tenancies)

• Overseas income (wages, interest, pensions, dividends, or business income earned overseas)

• Investment income (interest or dividends not taxed at source)

• Trust distributions not already taxed

• Cryptocurrency profits or mining income

• Cash jobs or informal side income

It is also your responsibility to keep complete and accurate records of this income to support your tax return.

⚠️ Why It’s Important to Declare All Income

New Zealand’s tax system relies on voluntary compliance, but the IRD has access to extensive data-matching tools, including information from banks, overseas tax authorities (under international agreements), and online platforms (e.g., Uber, Airbnb).

Failure to declare income can result in:

• Late filing penalties

• Interest on unpaid tax

• Shortfall penalties for intentional or careless errors

Declaring income correctly the first time helps avoid compliance issues and builds a trustworthy tax record.

✅ How METTAX Can Help

At METTAX, we understand that managing untaxed income—especially for self-employed individuals and small business owners—can be complex. We offer tailored tax services to help you:

• Identify which income must be declared

• Prepare and file your IR3 tax return accurately

• Maximise allowable deductions and expenses

• Meet all IRD deadlines and compliance requirements

📞 Contact us today for a consultation and take the stress out of your tax obligations.