Non-resident contractors tax (NRCT)

Applications and enquiries

We welcome all tax-related enquiries about non-resident contractors including applications for a certificate of exemption or special tax rate, schedular tax, PAYE, GST, and FBT. 
Please see our contact details below.

Applying for a certificate of exemption

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

• the non-resident contractor's name and where they are a tax resident
• a detailed description of the contract activity or service to be performed by the non-resident contractor in New Zealand, including details of what 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 activity, and their (expected) arrival and departure dates in and from New Zealand
• a brief background of any previous activity performed in New Zealand in the past two years, and comments on any anticipated activity that the non-resident contractor is likely to undertake in New Zealand within the next 12 months.

In determining a non-resident contractor's 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.

Special tax rate certificate applications

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 schedular tax.

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

If you are applying for a certificate of exemption or a special tax rate certificate, or if you have any enquiries about non-resident contractors’ tax, contact:

Find out more

The Non-resident Contractors Team can help you with information about DTAs.

You can contact them at:

Non-resident Contractors Team
Inland Revenue
PO Box 2198
Wellington 6140
New Zealand

Phone: 64 4 890 3056
Fax: 64 4 890 4510
Email: nr.contractors@ird.govt.nz

 

 

Date published: 25 Jan 2011

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