Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Agents

HD 25: Persons remitting amounts outside New Zealand

You could also call this:

“Rules for sending money overseas to non-residents”

If you send money from New Zealand to someone who doesn’t live here, and that money is their income, you might be treated as their agent. This happens if you’re their tenant, if you owe them money on a mortgage, or if you owe them money for any other reason. But this only applies if the tax office (called the Commissioner) tells you that you’re responsible as the absent person’s agent.

This rule also applies if you live in New Zealand but you’re using money from an overseas account to pay the absent person.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517444.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Banking and loans
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HD 24: Shipping businesses, or

“Rules for non-resident ship owners and charterers operating in New Zealand”

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HD 26: Agency in relation to non-residents generally, or

“Rules for acting as an agent for non-resident taxpayers in New Zealand”

Part H Taxation of certain entities
Agents

HD 25Persons remitting amounts outside New Zealand

  1. A person is treated as an agent if they are a tenant, mortgagor, or other person who remits an amount from New Zealand to an absentee who is their landlord, mortgagee, or creditor, when the amount is income derived by the absentee. But this subsection applies only after the Commissioner has notified the person that they are accountable as the absentee’s agent.

  2. If the amount referred to in subsection (1) is paid by or on account of a person resident in New Zealand from a fund outside New Zealand, it is treated as an amount to which this section applies.

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