Industry guidelines: Screen production industry
Non-resident entertainers
If you're an individual, an incorporated company, a partnership, a trust, an employee or a person representing them, you can be treated as a non-resident entertainer for tax purposes. As a non-resident you must pay tax in New Zealand on payments you receive for public performances or appearances in front of a camera in New Zealand as an entertainer.
How are you taxed?
Withholding tax is deducted by the person or company who pays you at a rate of 20% on the total payments you receive (gross earnings) while working in New Zealand. This is a full and final tax unless you choose to file a New Zealand tax return.
Whether you're an individual or a company, the withholding tax deduction will apply. If you have your own company (services company) and are paid through that company, or you are paid through an agent, the withholding tax deduction is triggered by your performance in New Zealand, even if you don't receive any payments while present in New Zealand.
Do you need to file a tax return?
No. However, you can choose to file a tax return to claim work-related expenses you had while working in New Zealand. New Zealand tax rates apply and you'll need an IRD number.
If you are providing entertainment services as a company, you may choose to file a Company tax return (IR4) or if you are entertaining as an individual, you may choose to file an Individual income tax return (IR3).
Send the tax return to the Non-resident Entertainers Unit.
Can you be exempt from paying tax?
Yes, but only if:
- you are taking part in a cultural programme sponsored by a government or promoted by an overseas non-profit cultural organisation, or
- you're a United States tax resident and your income while working in New Zealand as a non-resident entertainer does not exceed US$10,000 in the New Zealand tax year.
Note: Withholding tax will still need to be deducted from payments made to you, unless you have applied for and received an exemption certificate.
To apply for an exemption, email the Non-resident Entertainers Unit at nr.entertainers@ird.govt.nz or write to PO Box 5542, Auckland, setting out the details. If you need help, phone us on 09 367 1329.
Public performance
To be taxed as an entertainer, you must receive payments for a public performance in New Zealand. This includes voice-overs or time spent preparing in New Zealand for the public performance.
If you work behind the scenes (not before the public), you won't be a non-resident entertainer. However, you may be a non-resident contractor or an employee.
Double tax agreements and entertainers
New Zealand has double tax agreements with many other countries. Most have a provision dealing with entertainers. Generally, it provides the right to tax your income as an entertainer in the country in which you perform. The entertainers' provision overrides all other personal services provisions in a double tax agreement.
Stunt people
If you're a stunt person and you appear on screen, you are treated as an actor performing in public (an entertainer). If your duties in a film production don't extend to actually appearing on screen, you'll be treated as a non-resident contractor for tax purposes.
In some cases, you may work both behind the scenes and in front of the camera. In these cases, we apply principal purpose test to establish how you should be treated for tax purposes.
Animatronics or puppets
Although puppets or animatronics may appear on camera, they are treated as special effects and not as entertainers. If you're the person that manipulates the puppets or animatronics, you'll be treated as a non-resident contractor or an employee for tax purposes. However, if you provide the voices for the puppets, you'll be treated as an entertainer.
A puppet show is considered an entertainment activity in its own right. When you perform as a puppeteer in a puppet show, you'll be taxed as an entertainer.
Understudies and stand-ins
Generally, if you're involved in the screen production, you'll be taxed as an entertainer. You're regarded as being engaged as an actor, even though you may not appear in the final film, as New Zealand tax regulations draw a direct relationship to the public performance.
Principal purpose test
Sometimes behind-the-scenes staff will also appear on camera. In these cases, you'll have a "principal purpose" test applied. We may need to look at your employment contract to help us with the test.
If we determine that your principal purpose is to perform in front of the camera, you'll be treated as a non-resident entertainer for tax purposes. If your principal purpose is to engage in behind-the-scenes action (such as training or choreography), you'll be treated as a non-resident contractor.
Accident Compensation Corporation (ACC) levies
You're not liable for ACC levies if you, as an individual non-resident entertainer, have had the full and final 20% withholding tax deducted and you choose not to file an income tax return in New Zealand. If you file a tax return, you will be subject to ACC levies. Companies will not be liable to ACC. Please contact ACC for further details - you can go to their website under our related websites section of our site.
The "no-declaration rate"
If you're a non-resident entertainer on an independent contract, you aren't subject to the no-declaration rate and don't need to provide the production company with an IRD number.
If you're an employee, you must provide an IRD number, otherwise you'll pay the no-declaration rate which is a further 15% in addition to the normal tax deduction.
Goods and services tax (GST)
Generally you won't need to register for GST. If you're not sure, phone us on 0800 SCREEN (0800 727 336).
As a non-resident entertainer, you have no individual income tax obligations unless:
You are present in New Zealand for less than 183 days and choose to file a tax return
You'll only need to file a tax return if you want to deduct work-related expenses from your income to reduce your end-of-year tax.
ACC levies are also assessed on the net leviable earnings (income after expenses) by the ACC. If you choose not to file a return, only the full and final 20% withholding tax deduction applies.
You are present in New Zealand for more than 183 days
If your presence in New Zealand (including the dates of entry into and exit from) over any 12-month period exceeds an aggregate of 183 days, you'll generally become a resident entertainer. This means your withholding tax deductions are no longer full and final. You will need to file an income tax return declaring any payments you have received in New Zealand to determine whether you owe tax in addition to the 20% withholding tax.
Making New Zealand your home (an enduring relationship) means income you have earned elsewhere in the world is subject to tax here.
Whether you're non-resident or resident, the public performance and principal purpose guidelines continue to apply.
If you receive payment for your services in New Zealand through a "services company", the company will probably remain non-resident even if you are present in New Zealand for more than 183 days. You may become a resident entertainer and will need to file a New Zealand tax return. If this is the case, please contact the Non-resident Entertainers Unit.
Date published: 15 Oct 2004
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