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Non-resident contractors tax (NRCT)

General information for non-resident contractors

Inland Revenue operates a Unit for non-resident taxpayers performing contract activity in New Zealand, which includes the provision of services and for leased / hired equipment.

Essentially, non-resident contractors (both individuals and non-individuals) need to provide details of their activity in New Zealand to the Non-Resident Contractors Team so we can determine what taxation liabilities they may have, if any.

Unless the contractor holds a valid exemption or special tax rate certificate, the payer of the contract payment must deduct non-resident contractors tax (NRCT) at either 15% or 30%. The rate required to be deducted depends on the circumstances.

Please note, however, that from 1 December 2003 non-resident contractors are no longer required to apply for a certificate of exemption from NRCT if they are:

  • eligible for total relief under a double taxation agreement, and
  • present in New Zealand for less than 92 days aggregate in any 12-month period.

Also, from 1 December 2003 any payments received by a non-resident contractor where the total contract payments amount to less than $15,000 in a 12-month period, will be exempted from the requirement to have NRCT deducted.

This measure does not remove any New Zealand tax liability the non-resident contractor may have, just the obligation on the payer to deduct withholding tax at the time of payment.

If you are a non-resident contractor, you can find details of your obligations, and what our criteria are for granting an exemption certificate in the related sections under non-resident contractors tax area.

Contact details
Manager John Moreno
Phone 04 978 6010
Email john.moreno@ird.govt.nz
Team Leader, Non-resident contractor Leah Galbraith
Phone 04 890 3195
Email leah.galbraith@ird.govt.nz
Postal address Non-Resident Contractors Team
Private Bag 39984
Wellington
Calling within New Zealand 0800 443 773
Calling from overseas +64 4 890 3056
Facsimile +64 4 890 4510
Calling hours8am to 4.30pm, Monday to Friday
Email nr.contractors@ird.govt.nz

 

 


Date published: 25 Jul 2008

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