US-NZ Tax Treaty & Tariff Updates: What Kiwis Need to Know in 2025

As of April 2025, both tax obligations and trade conditions between New Zealand and the United States are under renewed focus. Whether you're a Kiwi living in the US, an investor with cross-border income, or a small business exporting to the States, here’s a breakdown of what you need to know — in plain English.

The Tax Treaty Between NZ and the US

New Zealand and the United States have a long-standing tax treaty designed to prevent double taxation and make life easier for individuals and companies with connections in both countries.

• Double Taxation Relief: If you’re a NZ resident with US income (or vice versa), you can generally claim a tax credit in your home country for tax paid abroad.
• Tax Residency Rules: The treaty helps determine which country has the right to tax you, using tiebreaker rules based on where you live, work, or maintain your primary economic ties.
• Withholding Tax Rates: Reduced rates apply for dividends, interest, and royalties — making cross-border investing more efficient.
• US Citizens in NZ: Due to the US “savings clause,” American citizens still need to file US tax returns even if they’re fully taxed in NZ.

Trump’s 10% Universal Tariff in 2025

In early April 2025, the US government reintroduced a sweeping 10% tariff on nearly all imports — including those from traditionally friendly countries like New Zealand. This marks a significant shift in trade dynamics.

• What’s Affected? NZ exports like lamb, wine, dairy, and machinery will now face this new surcharge when entering the US market.
• How Are Kiwis Responding? Trade Minister Todd McClay has confirmed that New Zealand will not retaliate but will instead focus on dialogue. Exporters are being encouraged to reassess supply chains and pricing strategies.
• Is There a Silver Lining? Despite the tariff, NZ products may still remain competitive — especially in premium categories where quality outweighs price sensitivity.

Practical Tips for Kiwi Individuals and Businesses

• Ensure you're compliant with both Inland Revenue and IRS filing requirements if you're dealing across borders.
• Talk to a tax advisor if you’re unsure about treaty benefits or how to report foreign income.
• If you're in export, watch freight costs and factor the 10% US tariff into your margins.

In an increasingly complex global environment, staying on top of tax and tariff changes is critical. The right planning today can save you time, stress, and money down the road.

Stay Informed

We recommend revisiting this guide every 6 months. International tax laws and trade policies are shifting fast — and the implications for Kiwis are real.

Read the full tax treaty here (PDF)

📌 About the Author

Kiwi Money Matters is written and maintained by a New Zealand-based writer with hands-on experience in finance and accounting since 2015.

All posts are personally researched, written to ensure clarity and trustworthiness for everyday Kiwis.