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Income Tax Act 2007

Income - Exempt income

CW 57: Non-resident company involved in exploration and development activities

You could also call this:

"Tax rules for non-resident companies doing offshore oil and gas work in New Zealand"

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If you are a non-resident company, you do not have to pay tax on income from exploration and development activities in an offshore permit area in New Zealand. This applies if the income is earned between 1 January 2025 and 31 December 2029. Exploration and development activities include operating a ship for seismic surveys and drilling exploratory wells. You can find more information about this by looking at the Taxation Act. An offshore permit area is an area of land in New Zealand that is on the seaward side of the mean high-water mark and is a permit area. This means it is an area where companies are allowed to explore for and develop petroleum deposits.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513306.

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Part CIncome
Exempt income

CW 57Non-resident company involved in exploration and development activities

  1. An amount of income derived by a non-resident company from exploration and development activities in an offshore permit area is exempt income if it is derived in the period that—

  2. starts on 1 January 2025; and
    1. ends on 31 December 2029.

      1. In this section,—

        exploration and development activities—

        1. means the following activities undertaken for the purposes of identifying and developing exploitable petroleum deposits or occurrences in an offshore permit area:
          1. operating a ship to provide seismic or electromagnetic survey readings:
            1. drilling an exploratory well or other well; but
            2. does not include using a drilling rig of modular construction that is installed on an existing offshore platform

              offshore permit area means an area of land that is—

              1. in New Zealand; and
                1. on the seaward side of the mean high-water mark; and
                  1. a permit area or part of a permit area.

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                  Notes
                  • Section CW 57(1)(a): replaced, on , by section 51 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                  • Section CW 57(1)(a): amended, on , by section 24(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CW 57(1)(b): replaced, on , by section 51 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                  • Section CW 57(1)(b): amended, on , by section 24(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CW 57(2) exploration and development activities: replaced, on , by section 34(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).