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Income Tax Act 2007

General collection rules - Employment-related taxes - Paying amounts of tax

RD 24: Exemptions for non-resident contractors

You could also call this:

"Special tax rules for workers from other countries"

Illustration for Income Tax Act 2007

You are a non-resident contractor if you work in New Zealand but do not live here. You may not have to pay tax on some of the money you earn. This is because of a double tax agreement or another reason, and the money is not assessable income. You can apply to the Commissioner for an exemption under section 24H of the Tax Administration Act 1994. This means you will not have to pay tax on some contract payments. You must have paid all your income tax and met your obligations under the Inland Revenue Acts in the past 24 months, and the Commissioner must be satisfied you will keep doing this. The Commissioner will look at your application and decide if you can have an exemption. If you get an exemption, you will not have to pay tax on some contract payments. You must meet the conditions to keep your exemption.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519993.

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Part RGeneral collection rules
Employment-related taxes: Paying amounts of tax

RD 24Exemptions for non-resident contractors

  1. This section applies when—

  2. a non-resident contractor derives an amount from a contract activity or service that is not assessable income, whether because of a double tax agreement or for another reason; or
      1. the contractor has in the period of 24 months before the date of the application referred to in subsection (2) paid all income tax payable by them and complied with their obligations under the Inland Revenue Acts, and the Commissioner is satisfied that the contractor will continue to do this.

        1. The non-resident contractor may apply to the Commissioner to provide them with an exemption under section 24H of the Tax Administration Act 1994 for a contract payment made to them or another person acting on their behalf in relation to a contract activity or service set out in the certificate for which no amount of tax is to be withheld.

        Compare
        • 2004 No 35 s NC 18(1)
        • Income Tax (Withholding Payments) Regulations 1979, regulation 5(3)
        Notes
        • Section RD 24 heading: amended, on , by section 210(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
        • Section RD 24(1)(a): amended, on , by section 130(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
        • Section RD 24(1)(b): repealed, on , by section 104 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
        • Section RD 24(2) heading: replaced, on , by section 210(2)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
        • Section RD 24(2): amended, on , by section 210(2)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
        • Section RD 24 list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
        • Section RD 24 list of defined terms assessable income: inserted, on , by section 130(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
        • Section RD 24 list of defined terms exemption certificate: repealed, on , by section 210(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
        • Section RD 24 list of defined terms income: repealed, on , by section 130(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).