As a content creator you may be required to work overseas as part of your income-earning activity. For example, an online gamer who is a member of an overseas-based team may spend half of the year working overseas with their team. Working digitally also allows content creators based in New Zealand to earn money overseas.
The income of a person who is a tax resident in New Zealand is taxable even if it was earned overseas or the income has an overseas source.
Your tax residency is different from your immigration status. Content creators need to work carefully through the guidance material here to determine their tax residency.
If a person has been a New Zealand tax resident, they will become a non-resident taxpayer if they both:
- do not have a permanent place of abode in New Zealand
- and are away from New Zealand for more than 325 days in any 12-month period.
If a content creator is a New Zealand tax resident and has income earned overseas, double tax agreements may affect how certain types of income are taxed, to help prevent being double taxed.
Find out more about residency and international tax.
Hyo Jin, originally from Tāmaki Makaurau, is a very popular musician and performer on TikTok. Recently, they have been collaborating and performing with a band in South Korea and posting to TikTok along the way.
In the last 12 months, they spent 6 months overseas and the rest of their time in New Zealand. Hyo Jin was absent from New Zealand for only 185 days during the last 12 months. This is not long enough for Hyo Jin to lose their New Zealand tax residency.
Because Hyo Jin is a New Zealand resident, they are taxed in New Zealand on all the income they receive (whether from New Zealand or overseas). As a New Zealand tax resident, Hyo Jin would need to be absent for more than 325 days and not have a permanent place of abode in New Zealand to lose their New Zealand tax residency.