Tax & Contracting

For Non-resident contractors

A non-resident contractor (NRC) is any person, company or other entity who is not a tax resident in New Zealand, and has a contract, agreement or arrangement to perform contract activity which can be for services or supply of equipment under a lease in New Zealand. This does not apply to contracts of service between an employer and employee.

Deducting tax from schedular payments

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. 

If you are a non-resident contractor, tax on payments is not deducted when:

  • you are eligible for relief under a double taxation agreement, and present in NZ for 92 days or less in any 12-month period, or
  • any contract payments you receive total less than $15,000 in any 12-month period.
  • you have a current certificate of exemption.

How to apply for a certificate of exemption?

You will need to meet one of these three criteria to receive a certificate of exemption:

  • your resident country has a DTA with New Zealand that allows for a certificate of exemption, or
  • you give a bond or other form of security which will secure payment of any income tax payable, or
  • in the 24-month period preceding the application you have complied with your tax obligations.