For non-residents & visitors: Non-resident contractors
Non-resident contractors working in New Zealand
Non-resident contractors are independent persons, companies or other entities who perform services in New Zealand under contract.
This information does not apply to employees, sportspeople, entertainers and performing artists.
What are my tax responsibilities in New Zealand?
You may be a tax resident in both New Zealand and another country or territory. This means that you are a resident in two countries or territories and subject to the tax laws of each.
If both countries or territories tax their residents on worldwide income you could be taxed twice on the same income. Double tax agreements (DTAs) have been negotiated between New Zealand and many other countries or territories to decide which country has the first or sole right to tax specific types of income. Find out from this table if your country or territory has a DTA with New Zealand.
| Countries or territories with DTAs with New Zealand | ||
|---|---|---|
|
Australia |
India |
Russian Federation |
|
Austria |
Indonesia |
Singapore |
|
Belgium |
Ireland |
South Africa |
|
Canada |
Italy |
Spain |
|
Chile |
Japan |
Sweden |
|
China |
Korea |
Switzerland |
|
Czech Republic |
Malaysia |
Taiwan |
|
Denmark |
Mexico |
Thailand |
|
Finland |
Netherlands | United Arab Emirates |
|
Fiji |
Norway |
United Kingdom |
|
France |
Philippines |
United States of America |
|
Germany |
Poland |
|
Further information about these DTAs is found on the Policy Advice Division website.
My country or territory has a DTA with New Zealand
If your country or territory has a DTA with New Zealand, you may be exempt from New Zealand income tax.
| If you are ... | then ... |
|---|---|
|
an independent (self-employed) contractor |
most DTAs will exempt you from income tax in New Zealand if:
|
|
a company or other entity |
you may be exempt if your presence does not give rise to a permanent establishment in New Zealand. |
Note
The conditions vary between DTAs for both individuals and companies. Some types of income may not be exempt, for example, royalties. You should check your country's or territory's DTA for more information.
My country or territory doesn't have a DTA with New Zealand
| If your country or territory doesn't have a DTA with New Zealand and you are ... | then ... |
|---|---|
|
a tax resident in that country or territory |
you will be liable for income tax. |
|
receiving payments for contract work undertaken in New Zealand |
the payer must deduct withholding tax (see next table). |
| If your country or territory doesn't have a DTA with New Zealand and you are ... | and ... | then the payer must deduct withholding tax of ... |
|---|---|---|
|
|
have supplied the payer with a NZ IRD number |
15%. |
|
an independent non-resident contractor |
have not supplied the payer with a NZ IRD number |
30%. |
|
a non-resident contractor company |
have not supplied the payer with a NZ IRD number |
20%. |
Note
This withholding tax is an interim tax and you must file tax returns in New Zealand to work out your actual amount of tax due.
In some cases, the withholding tax that has been deducted is more than your actual amount of tax due. For example, if you can claim expenses against the contract income. In this case, you can apply for a special tax rate to suit your particular situation.
Find out more
The Non-resident Contractors Team can help you with information about:
- non-resident contractors withholding tax, and how to apply for either an exemption or special tax rate certificate
- goods and services tax (GST), including registering for GST as a non-resident.
You can contact them at:
Non-resident Contractors Team
Inland Revenue
Private Bag 39984
Wellington Mail Centre
New Zealand
Phone 64 4 890 3056
Fax 64 4 890 4510
Email nr.contractors@ird.govt.nz
Date published: 10 Sep 2008
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