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Income Tax Act 2007

Income - Exempt income

CW 21: Amounts derived by visiting crew of pleasure craft

You could also call this:

“Tax exemption for foreign crew on visiting pleasure boats”

If you’re a crew member on a pleasure craft visiting New Zealand, you might not have to pay tax on the money you earn while working on the boat in New Zealand. This is true if:

You’re not a resident of New Zealand, and you’re working for someone who also doesn’t live in New Zealand.

The pleasure craft has a special security arrangement with New Zealand Customs, as described in section 136 of the Customs and Excise Act 2018.

The pleasure craft isn’t owned, even partly, by someone living in New Zealand or by a type of foreign company that New Zealand has some control over.

To be considered a non-resident crew member, you need to:

Be part of the crew on a pleasure craft.

Not be a resident of New Zealand.

Not spend more than 365 days in New Zealand over any two-year period starting from 28 May 2002.

Be in New Zealand legally, according to the Immigration Act 2009.

A pleasure craft is defined in section 2 of the Maritime Transport Act 1994.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513194.

Topics:
Money and consumer rights > Taxes
Immigration and citizenship > Visas
Transport and travel > Boating
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CW 20: Amounts derived by visiting entertainers including sportspersons, or

“Tax rules for overseas performers and athletes in New Zealand”

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CW 22: Amounts derived by overseas experts and trainees in New Zealand by government arrangement, or

“Tax exemption for overseas experts and trainees visiting NZ under government agreements”

Part C Income
Exempt income

CW 21Amounts derived by visiting crew of pleasure craft

  1. Income that a non-resident crew member derives from performing services in New Zealand relating to a pleasure craft while it is in New Zealand is exempt income if—

  2. the services are performed for a person who is not resident in New Zealand; and
    1. the pleasure craft is the subject of a security given under section 136 of the Customs and Excise Act 2018; and
      1. the pleasure craft is not owned, wholly or partly or directly or indirectly, by—
        1. a resident of New Zealand; or
          1. a controlled foreign company.

          2. In this section,—

            non-resident crew member means a person who—

            1. is a crew member of a pleasure craft; and
              1. is a non-resident, a matter determined without applying section YD 1(3) (Residence of natural persons); and
                1. is not present in New Zealand on more than 365 days in any 2-year period that starts on or after 28 May 2002; and
                  1. is not in New Zealand unlawfully under the Immigration Act 2009

                    pleasure craft is defined in section 2 of the Maritime Transport Act 1994.

                    Compare
                    Notes
                    • Section CW 21(1)(b): amended, on , by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).
                    • Section CW 21(2) non-resident crew member: amended, on , by section 406(1) of the Immigration Act 2009 (2009 No 51).