Non-resident contractors tax (NRCT)
Contract activity or service
"Contract activity or service" has a very broad and expansive meaning as defined in section YA1 of the Income Tax Act 2007 (the Act). In relation to a non-resident contractor, it states:
- performing any work in New Zealand
- rendering a service of any kind in New Zealand
- providing the use of, or right to use, in New Zealand, any personal property or services of any person other than the non-resident contractor.
There are few activities that do not meet the definition of non-resident contractor "contract activity or service".
The Act does not apply to any contract activity by a non-resident contractor performed outside New Zealand.
Please contact us if you are unsure whether the nature of the services provided by a non-resident contractor comes within the definition of "contract activity or service”.
The term "contract activity or service” is not limited to the following examples:
- technical, or
- weather forecasting service, and
- any service in respect of or in relation to any feasibility, financial, or marketing study or evaluation.
"Contract payment" for a non-resident contractor, means any payment other than:
- a royalty, or
- a payment made to the non-resident contractor by or on behalf of a person who is not associated with the contractor, to reimburse costs incurred by the contractor, or
- a payment referred to in schedule 4, part E of the Income Tax Act 2007 (Rates of tax for schedular payments).
Find out more
The Non-resident Contractors Team can help you with information about DTAs.
You can contact them at:
Non-resident Contractors Team
PO Box 2198
Phone: 64 4 890 3056
Fax: 64 4 890 4502
Other pages in: Non-resident contractors tax (NRCT)
- Non-resident contractors
- Non-resident contractor's tax obligations as an employer
- Background and legislation
- Exemption and special tax rate certificates
- Accounting for tax on schedular payments
- The 92-day rule for employees
- Double tax agreements - the 183-day rule
- Applications and enquiries
- Non-resident contractors' tax - examples
Date published: 25 Jan 2011
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