Te tāke mā ngā kaiutu tāke kainoho-tāwāhi Tax for non-resident taxpayers

If you're an employee, your New Zealand employer will deduct tax each time you're paid. This is called 'pay as you earn' (PAYE) and covers your income tax and an ACC earners' levy, New Zealand's accident insurance scheme.

When you start working in New Zealand, you’ll need to give your employer your IRD number and tax code.

• You provide this information on an IR330 form.
• If you do not give this information to your employer, you'll be taxed at a higher rate.
• You will usually not need to file a tax return if your only income is from New Zealand employment and you have been on the correct tax code.

Keep in mind that if you're in New Zealand for more than 183 days in a 12-month period, you'll become a New Zealand tax resident. This status is backdated to the first of those days.

Also be aware that your immigration status may not allow you to work in New Zealand. However, you still must pay tax if you do work illegally.

You can work out your tax code with our online tool or in the Tax code declaration - IR330 form.

Work out my tax code

There are special rules which apply to certain non-resident taxpayers. These rules may, for example:

• exempt certain income if the conditions are met
• set a special tax rate.

You can find out more about the following types of non-resident taxpayers. Their links are listed after the introduction on the 'Non-resident taxpayers' page.

• Diplomatic personnel
• Experts and trainees visiting from overseas
• Non-resident contractors
• Non-resident crews of visiting pleasure craft
• Non-resident employees
• Non-resident entertainers and sportspeople
• Overseas fishing crew working in New Zealand
• Recognised seasonal employer (RSE) workers.

Non-resident taxpayers

If you're getting interest, dividends or royalties from a New Zealand source, you'll probably pay non-resident withholding tax (NRWT) on this income. In the case of interest, you may choose to pay the approved issuer levy (AIL) instead.

• If the correct rate of NRWT or AIL has been deducted and it's your only income, then you will not need to file a tax return.
• If the wrong amount of NRWT is deducted, you'll need to include the income in a tax return.

AIL is a levy of 2% instead of NRWT on certain debt. As a levy, you probably will not be able to claim it as a credit in your country or territory of tax residence, but it may be of use where you're not taxed on that interest.

There are default rates of NRWT, but if New Zealand has a double tax agreement (DTA) with your country or territory of tax residence, the rate will often be lower.

Note that different rules apply if you invest in a portfolio investment entity (PIE). See our guidance for PIEs in this list.

A portfolio investment entity is an entity which invests contributions from its investors in different passive investments. Non-resident taxpayers have a prescribed investor rate (PIR) of 28%.

However, if you become a notified foreign investor (NFI), you'll be able to invest in zero-rate or variable-rate PIEs and pay a lower rate.

If you stop being an NFI, you should consult the guide for PIEs - IR860.

Portfolio investment entities for non-residents

If you're a non-resident taxpayer and have settled a trust overseas which has a New Zealand resident trustee, there is a special disclosure regime. If you do not meet the requirements of that regime, the exemption for foreign-sourced income will be lost.

Foreign trusts with New Zealand resident trustees

If you're a non-resident beneficiary of a trust with income from New Zealand sources, you'll be taxed on any income and distributions you get from the trust.

• You'll need to check with the trustee to see if they deducted the tax for you.
• You may need to file a tax return depending on the type of income you get from the trust and complete an IR307 form if that income is from a foreign or non-complying trust.

A gain made from selling a property in New Zealand may be taxed if you had the intention to sell it when you bought it.

However, there are also bright-line tests which tax any gains from the sale of residential property regardless of your intention when you bought. Any gains need to be included in a tax return.

The bright-line tests apply to properties:

• bought on or after 1 October 2015 to 28 March 2018 and sold within 2 years
• bought on or after 29 March 2018 and sold within 5 years.

If you're an offshore person, you may need to have resident land withholding tax (RLWT) deducted from the sale. You can claim this amount as a credit when you include the gain in your tax return.

Buying and selling residential property

Any rental income you earn in New Zealand is taxable. You'll need to include this in your tax return and keep detailed receipts and records for any expenses you claim.

You may need to deduct non-resident withholding tax (NRWT) if you financed the property with certain debt from overseas. We recommend consulting a tax professional.

Non-residents renting out New Zealand residential property