Paying a non-resident contractor or entertainer

• Non-resident contractor's tax obligations as an employer
• Accounting for tax on schedular payments
• Deducting tax from schedular payments for non-resident contractors
• Deducting tax from schedular payments for non-resident entertainers and sportspeople

Non-resident contractor's tax obligations as an employer

As a non-resident contractor your tax obligations as an employer are outlined in this section.

Find out more about non-resident contractor's tax obligations as an employer

Accounting for tax on schedular payments

Non-resident contractors' tax (NRCT) is withheld from each contract payment made to the non-resident contractor at the standard or special tax rate. Payers must ensure that they hold a fully completed Tax code declaration (IR330) on the non-resident contractor's behalf.

When the payer does not hold a fully completed tax code declaration, tax must be deducted, under section RD 18 of the Income Tax Act 2007 (the Act), at the non-declaration rate of 30 cents for each dollar for independent non-resident contractor, or 20 cents for each dollar for companies.

Find out more about accounting for tax on schedular payments

Deducting tax from schedular payments for non-resident contractors

If you are a non-resident contractor and work, lease or rent equipment you will have tax deducted from schedular payments income that is earned in New Zealand. Unless you hold a valid certificate of exemption from non-resident contractors' tax (NRCT) at the time payment is made, the payer must deduct tax from it.

Find out more about deducting tax from schedular payments

Deducting tax from schedular payments for non-resident entertainers and sportspeople

If you are an entertainer performing in New Zealand, you are subject to tax on schedular payments of 20 cents in each dollar paid to you or any other person on your behalf. It does not matter whether you are an individual, company or other entity.

Find out more about schedular payments for non-resident entertainers and sportspeople

 

Date published: 13 Oct 2011

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