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CC 8B: Certain commercial bills: non-resident holders
or “Tax rules for non-New Zealanders holding certain commercial bills”
You could also call this:

“Payments for using your property or rights are considered income”

If you receive a royalty, it’s considered income. A royalty is a payment you get for letting someone use your property or rights. This can include things like copyrights, patents, trademarks, or designs. It also covers payments for using mines, quarries, or extracting natural resources like timber.

Royalties can also be payments for using films, videos, or radio broadcasts. If you provide scientific, technical, or commercial information, that can be a royalty too. Even if you agree not to use your property or rights, or if you help someone use these things, the payment you get is still a royalty.

It doesn’t matter how the payment is described or how often you get it. Even if it’s part of buying real estate or personal property, it’s still considered a royalty. The government counts all these types of payments as royalties when they’re looking at your income.

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Next up: CC 10: Films

or “Income from rights or interests in films”
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Part C Income
Income from holding property (excluding equity)

CC 9Royalties

  1. A royalty derived by a person is income of the person.

  2. Royalty includes a payment of any kind derived as consideration for—

  3. the use of, or right to use, a copyright, patent, plant variety rights, trademark, design or model, plan, secret formula or process, or other similar property or right:
    1. the use of, or right to use, a mine or quarry:
      1. the extraction, removal, or other exploitation of standing timber or a natural resource:
        1. the right to extract, remove, or otherwise exploit standing timber or a natural resource:
          1. the use of, or right to use, a film, a videotape, or a tape in connection with radio broadcasting:
            1. the supply of scientific, technical, industrial, or commercial knowledge or information:
              1. the total or partial forbearance of the use of, or the grant of a right to use, property or a right referred to in any of paragraphs (a) to (e):
                1. the supply of assistance that enables the application or use of anything in any of paragraphs (a) to (f):
                  1. the total or partial forbearance of the supply of knowledge or information or assistance referred to in paragraph (f) or (h).

                    1. For the purposes of subsection (2), none of the following is relevant:

                    2. how the payment is described or computed:
                      1. whether the payment is periodical or otherwise:
                        1. whether the payment is an instalment of the purchase price of real property:
                          1. whether the payment is an instalment of the purchase price of personal property.

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                            Notes
                            • Section CC 9 list of defined terms natural resource: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).