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Sportspeople include anyone who plays a sport or similar activity, or umpires, whether paid or unpaid.

Sports clubs include any sporting organisation, whether they operate as a business or not-for-profit. 

Different rules apply

If you’re a sportsperson or an authorised person of a sporting club, you may have tax obligations.

Resident and non-resident sportspeople have different rules from each other. Different rules also apply to the different types of sporting organisations.

Resident sportspeople 

Regardless of your code you may need to pay tax depending on if you are an amateur or professional for tax purposes.

Amateur and professional sportspeople
Taxing prize money

If this is not your only source of income, you may need to consider secondary tax codes depending on the type.

Secondary tax codes

Non-resident sportspeople

If you're a non-resident sportsperson then special tax rules apply to you.

Non-resident entertainers and sportspeople

Sports clubs, societies, trusts and associations

If your sports club is registered as a type of not-for-profit or charity, you have different obligations and benefits.

Running your NFP or charity

Your club might be able to get an income tax exemption if you meet the requirements.

Sports clubs and societies

If you repay volunteers for money they've spent working for your organisation, you may not need to deduct tax from the payment.

Volunteer payments and expenses

You will need to register as an employer and pay schedular tax if you make payments to your volunteers and amateur players beyond their expenses. This includes work at a sporting event or competition.

Register as an employer
Schedular payments

If you are paying professionals, you still need to register as an employer but pay PAYE instead.

Paying staff

Tax Technical advice

Our Tax Technical website has more information about sportspeople including volunteers and gifts.

IS 23/11 | Income tax: Income – when gifts are assessable income (taxtechnical.ird.govt.nz)
Tax treatment of reimbursements and honoraria paid to volunteers (taxtechnical.ird.govt.nz)
Vol 21 No 8 | TIB - October/November 2009 (taxtechnical.ird.govt.nz)

Last updated: 29 May 2024
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