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You may need to deduct tax from payments you make to non-resident contractors.

A non-resident contractor is a non-resident person, company or entity contracted to provide services, the use of another person’s services, or the use of equipment in New Zealand.

Employees, non-resident entertainers and sportspeople are not non-resident contractors.

If the contractor provides their services from outside New Zealand and does not have any presence in New Zealand, they are not a non-resident contractor.

What you need to do

Work out if you must withhold tax from the payments you make. You do not need to withhold tax if the contractor:

  • will get payments for their services of $15,000 or less in a 12-month period. This includes payments they get from other contract payers
  • will be in New Zealand for less than 92 days in total in any 12-month period and does not have to pay tax in New Zealand under a double tax agreement
  • provides you with a valid exemption from non-resident contractors’ tax. The exemption must be valid for the time period you’ll pay the contractor in.

When you count the number of days the contractor is present in New Zealand, include the day they arrive and the day they leave.

You or your tax agent may need to check the relevant double tax agreement to see if the contractor will have to pay tax in New Zealand. Contact us if you're not sure.

Double tax agreements


If the non-resident contractor does not have to pay tax because of a double tax agreement, they should apply to us for an exemption.

Apply for an exemption as a non-resident contractor

Deducting tax from payments to non-resident contractors

If you need to withhold tax from a payment to a non-resident contractor, treat it as a schedular payment.

You can find the withholding tax rates on the Tax rate notification for contractors form - IR330C.

Tax schedular payments and file employment information

Tax rate notification for contractors IR330C PDF 94KB Download form

Contact us

The non-resident contractors team can help you to understand your obligations as a payer of non-resident contractors.

Email us

nr.contractors@
ird.govt.nz

Non-resident contractors