Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Agents

HD 29: Persons acquiring goods from overseas

You could also call this:

“Helping overseas buyers purchase goods in New Zealand”

This law is about when you help someone from another country buy things in New Zealand. If you’re in New Zealand and you help someone who lives outside New Zealand buy goods that are already in New Zealand or will be brought into New Zealand, some special rules apply.

The person from overseas is treated as if they are running a business in New Zealand. You are treated as their helper for this business. The money made from this business is considered to come from New Zealand.

If you help with this kind of purchase, you might have to pay tax on behalf of the overseas person. But you won’t have to pay if the tax office (called the Commissioner) believes that in similar situations in the overseas person’s country, a New Zealander wouldn’t have to pay tax there.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517454.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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Part H Taxation of certain entities
Agents

HD 29Persons acquiring goods from overseas

  1. This section applies, in relation to an acquisition of goods, to—

  2. a person in New Zealand (person A); and
    1. person A’s principal who is resident in a country or territory outside New Zealand, and not resident in New Zealand (person B).

      1. If person A is instrumental in arranging the purchase or other acquisition of goods from person B, and the goods are either in New Zealand or are to be imported into New Zealand under the contract of purchase, person A and person B and the income are treated as follows:

      2. person B is treated as carrying on a business in New Zealand; and
        1. person A is treated as person B’s agent in relation to the income derived from the business; and
          1. the income from the business is treated as having a source in New Zealand.

            1. Person A is not liable as agent for the payment of income tax if the Commissioner is satisfied that in corresponding circumstances in a country or territory outside New Zealand, person B, if resident in New Zealand, would not be liable for income tax in that country or territory.

            Compare
            Notes
            • Section HD 29 heading: amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
            • Section HD 29(1): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
            • Section HD 29(2) heading: amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
            • Section HD 29(2): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
            • Section HD 29(2)(c): amended, on , by section 80(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
            • Section HD 29 list of defined terms derived from New Zealand: repealed, on , by section 80(2)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
            • Section HD 29 list of defined terms source in New Zealand: inserted, on , by section 80(2)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).