Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
CW 21: Amounts derived by visiting crew of pleasure craft
or “Tax exemption for foreign crew on visiting pleasure boats”
You could also call this:

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

You don’t have to pay income tax on money you earn from doing personal services, including professional services, in New Zealand during a visit if:

You’re doing the work for an employer who doesn’t live in New Zealand, and you’re here to give expert advice, teach, do research, or get education or training. Your visit must be part of an agreement the New Zealand government has made to help other countries.

You also don’t have to pay tax on money you get for living expenses, allowances, or scholarships while you’re in New Zealand if you’re here for the same reasons and it’s part of the same kind of agreement.

These agreements can be with the Commonwealth Education Scheme, United Nations programmes, or to help train people from Samoa, Cook Islands, Niue, or Tokelau. They can also be with other countries or international organisations to provide various types of assistance or training.

An international organisation means a group whose members are countries or their governments.

For this law, you’re considered a non-resident person if you wouldn’t normally live in New Zealand, and you’re only here because of one of these assistance agreements.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: CW 23: Income for military or police service in operational area

or “Tax-free income for military and police serving in operational areas”
Next

Part C Income
Exempt income

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

  1. Income that a non-resident person derives from performing personal services, including professional services, in New Zealand during a visit is exempt income if—

  2. the services are performed for or on behalf of a non-resident employer; and
    1. the purpose of the visit is all or any of the following:
      1. providing professional or expert advice or assistance:
        1. teaching or lecturing:
          1. making investigations:
            1. receiving education, training, or experience; and
            2. the visit occurs under an arrangement for assistance entered into by the government of New Zealand.

              1. An amount of income that a non-resident person derives from a payment of maintenance or of an allowance, or from a bursary or scholarship, provided for or paid to the person during or in relation to their presence in New Zealand during a visit, is exempt income if—

              2. the purpose of the visit is all or any of the following:
                1. providing professional or expert advice or assistance:
                  1. teaching or lecturing:
                    1. making investigations:
                      1. receiving education, training, or experience; and
                      2. the visit occurs under an arrangement for assistance entered into by the government of New Zealand.

                        1. In this section,—

                          arrangement for assistance entered into by the government of New Zealand means an arrangement entered into by the government of New Zealand—

                          1. in relation to or under—
                            1. the Commonwealth Education Scheme; or
                              1. a programme of the United Nations, or any specialised agency of the United Nations, for cultural, economic, educational, expert, professional, or technical assistance; or
                              2. for the purpose of providing education, training, or experience for officers of the Samoan, Cook Islands, Niuean, or Tokelauan public services, or for persons resident in Samoa, the Cook Islands, Niue, or Tokelau; or
                                1. with the government of any other country or with any international organisation, if it is an arrangement that—
                                  1. is for the purpose of providing cultural, economic, educational, expert, professional, or technical assistance, or administrative or other training, or the means or facilities for making investigations, whether upon a bilateral, co-operative, multilateral, mutual, or unilateral basis; and
                                    1. is in principle similar to any arrangement to which paragraph (a) or (b) applies

                                    international organisation means an organisation whose members are sovereign powers, whether countries of the Commonwealth or foreign sovereign powers, or the governments of those countries or powers

                                      non-resident person means a person who would not be resident in New Zealand if they were not present in New Zealand under an arrangement for assistance entered into by the government of New Zealand. The residence of the person is determined without applying section YD 1(3) (Residence of natural persons).

                                      Compare