Goods and Services Tax Act 1985

Special cases

59: Liability of agent of absentee principal for returns and tax

You could also call this:

"When you do things in New Zealand for someone who lives overseas, you are responsible for their tax returns and payments."

Illustration for Goods and Services Tax Act 1985

If you are in New Zealand and you do things for someone who is not in the country, you might be considered their agent. The person you are doing things for is called the principal, and if they are an absentee, that means they are not in New Zealand. You are their agent if you do taxable activities for them in New Zealand.

If you are an agent for an absentee principal, you have to fill out tax returns for the things you do for them. You are also responsible for paying any tax that is owed on those things. This is because the principal is not in New Zealand, so you have to take care of the tax for them.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM85219.

Topics:

Money and consumer rights > Taxes

58: Personal representative, liquidator, receiver, etc, or

"What happens when someone else manages a business or person's taxes because they can't do it themselves"

60: Agents and auctioneers, or

"Rules for when someone helps you buy or sell things, like an agent or auctioneer"

Part 9Special cases

59Liability of agent of absentee principal for returns and tax

For the purposes of this section, the term absentee means—
any person, not being a company, who is for the time being out of New Zealand:
any company, not being a company incorporated in New Zealand, unless it has a fixed or permanent place in New Zealand relating to the carrying on of any taxable activity in New Zealand in its own name:
any company, not being a company incorporated in New Zealand, which is declared by the Commissioner to be an absentee for the purposes of this Act by notice given to that company or to its agent or attorney in New Zealand, so long as that declaration remains unrevoked.

Every person who in New Zealand carries on any taxable activity for and on behalf of a principal who is an absentee shall, for the purposes of this Act, be the agent of that principal in respect of that taxable activity so carried on in New Zealand by means of that agent, and the agent shall make returns and be liable for any tax charged or levied under this Act.