Industry guidelines: Screen production industry

Equipment rentals

Are you a non-resident entertainer or a non-resident contractor bringing rental equipment into New Zealand for which you will receive payment?

• The payment you receive will be treated as income earned in New Zealand. In most cases, it will be subject to New Zealand tax.
• Many countries have double tax agreements with New Zealand that specify a flat rate of tax (usually 10% or 15%).
• You'll need to apply to us in writing for a special tax rate certificate that will tell you the rate you'll be taxed at.
• A few countries have double tax agreements that provide full exemption from tax, in which case you will need to apply to us for an exemption certificate.
• Where New Zealand has no double tax agreement with your country of residence, you'll need to complete an income tax return.

Are you a non-resident contractor receiving payment (for equipment use) connected with a permanent establishment in New Zealand?

• The payment will be taxed as part of the New Zealand business earnings.

Are you a resident contractor leasing equipment from a non-resident?

• Any lease or rental payments you make to a non-resident for the use of equipment in New Zealand will be subject to tax in New Zealand.
• You must deduct tax from the payment at the rate specified in the double tax agreement that applies to the non-resident (10% or 15%). If the supplier is from a country that has no double tax agreement or they haven't given you their IRD number, you must deduct tax at 30%. These deductions are returned to the Inland Revenue through your Employer monthly schedule (IR348).

Other pages in: Screen production industry

• Recent changes to legislation
• Resident entertainers
• Self-employed resident contractors
• Double tax agreements
• Entertainer, contractor or employee?
• Are you a resident or non-resident?
• Non-resident entertainers
• Per diems and allowances
• Screen production industry glossary

Date published: 15 Oct 2004

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