Non-resident contractors tax (NRCT)

Applications and enquiries

Applications for certificates of exemption must be in writing and contain the following information:

• the non-resident contractor's name and where they are tax resident
• a detailed description of the contract activity to be performed by the non-resident contractor in New Zealand , including details of what contract activities are to be performed in and out of New Zealand by the contractor
• a copy of the contract entered into between the non-resident contractor and the payer
• details of the contract period, expected contract payment dates, and contract amount(s)
• names of all the non-resident contractor's employees who will be present in New Zealand performing the contract activity, and their (expected) arrival and departure dates in and from New Zealand
• a brief background of any previous contract activity performed in New Zealand in the past two years, and comments on any anticipated contract activity that the non-resident contractor is likely to undertake in New Zealand within the next 12 months.

In determining an non-resident contractors New Zealand tax liability, we will firstly establish whether the non-resident contractor's income is exempt income under New Zealand domestic tax legislation. If the income is not exempt income, we will check if there is any tax relief provided by a double tax agreement.

Applications for special tax rate certificates must include the same information as required for applications for a certificate of exemption, but also include a budgeted income statement that discloses total gross income less allowable deductions for the contract activity. We need this information to calculate the non-resident contractor's New Zealand taxable income to determine the appropriate rate of withholding tax.

If you are applying for a certificate of exemption or a special tax rate certificate, or if you have any enquiries about the withholding tax, contact:

Non-resident Contractors Team
Inland Revenue
Private Bag 39984
Wellington
New Zealand

Phone +64 4 890 3056
Facsimile +64 4 890 4510

The Non-resident Contractors Team also deals with the other associated tax issues of non-resident contractors, for example, PAYE, GST, and FBT.

Other pages in: Non-resident contractors tax (NRCT)

• Types and definitions of contracts
• Double tax agreements - the 183-day rule
• Accounting for tax on schedular payments
• Exemption and special tax rate certificates
• The 92-day rule for employees
• General information for non-resident contractors
• Background and legislation
• Non-resident contractors' tax - examples
• Non-resident contractor's tax obligations as an employer

Date published: 05 Sep 2006

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