If New Zealand has a double tax agreement (DTA) with your home country, you might be exempt from paying income tax. You would pay it in your home country instead.
You or your agent need to check if the DTA allows this.
You can apply for an exemption from non-resident contractor’s tax (NRCT) if:
- New Zealand has a double tax agreement with your home country
- this double tax agreement means you do not have to pay income tax in New Zealand, and
- you'll be in New Zealand for more than 92 days in a 12-month period.
If you do not get an exemption your payer will deduct tax from your schedular payments before they pay you.
If a double tax agreement means you do not have to pay income tax in New Zealand, and you'll be in New Zealand for 92 days or less in a 12-month period, then:
- you do not need to apply for an exemption from NRCT, and
- your payer does not need to withhold NRCT from schedular payments they make to you.
If tax was deducted from your schedular payments before you were paid you will need to file an Individual tax return IR3 at the end of the tax year or when you leave New Zealand. The IR3 tells you if you're due a refund or have more tax to pay.
You are only exempt while you're a non-resident taxpayer. You become a New Zealand tax resident when the first of these happens:
- You've lived in New Zealand for more than 183 days in any 12-month period.
- You have a permanent place of abode in New Zealand.
Talk to your tax agent or us about your situation. We can help you to understand your tax obligations and entitlements.