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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 exploration work in New Zealand"

Illustration for Income Tax Act 2007

If you are a non-resident company doing exploration and development activities in an offshore permit area in New Zealand, some of your income is exempt. This means you do not have to pay tax on that income if it is earned between 1 January 2020 and 31 December 2024. You are doing exploration and development activities if you are operating a ship to provide seismic or electromagnetic survey readings, or drilling an exploratory well. You are in an offshore permit area if you are in New Zealand, on the seaward side of the mean high-water mark, and in a permit area. The Income Tax Act 2007 has more information about this, you can compare it to the 2004 version, CW 45B. You can find more details about the changes to this section in the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 and the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014.

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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 2020; and
    1. ends on 31 December 2024.

      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)(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(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).