Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Income specific to certain entities

CV 16: Non-resident shippers

You could also call this:

“Tax rules for overseas ship owners carrying goods or people from New Zealand”

When a ship owned or chartered by someone who doesn’t live in New Zealand carries cargo, mail, or passengers from New Zealand to other countries, this law applies to them.

The law says that 5% of what the ship owner or charter company gets paid for carrying things or people is counted as their income. This is true whether they get paid inside or outside of New Zealand.

However, sometimes the Commissioner might decide that some or all of this money isn’t actually income from New Zealand. They can say it’s money from another country instead.

The law also explains that even if a ship stops at another New Zealand port after picking up cargo, mail, or passengers, it still counts as carrying those things outside of New Zealand from the first port.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513121.

Topics:
Money and consumer rights > Taxes
Transport and travel > Boating
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“Rules for taxing previously tax-exempt money held by non-exempt charities”

Part C Income
Income specific to certain entities

CV 16Non-resident shippers

  1. This section applies when a ship that belongs to, or is chartered by, a non-resident person carries outside New Zealand cargo, mail, or passengers shipped or embarked in New Zealand.

  2. Five percent of the amount payable to the person for the carriage, whether payable inside or outside New Zealand, is treated as income of the person.

  3. Despite subsection (2), the Commissioner may determine that some or all of an amount that would otherwise be income of a person under this section is a foreign-sourced amount.

  4. In this section, cargo, mail, or passengers shipped or embarked at a port in New Zealand for carriage outside New Zealand are treated as carried outside New Zealand from that port, even though the ship may call at another port in New Zealand before finally leaving New Zealand.

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