Foreign Crew Members - Working in New Zealand
The following information relates to foreign crew members considering working in New Zealand. It is of a general nature only and provides some key points to consider before working in New Zealand. It is essential to obtain professional tax and Visa advice in your home country and in New Zealand from suitably qualified organisations.
Do I need an accountant?
You do not need an accountant to meet your tax obligation in New Zealand. The Inland Revenue Department (IRD) provide information online or over the phone on your tax obligations and entitlements. For more information contact the Non-resident Contractors Unit at nr.contractors@ird.govt.nz or phone 64 4 890 3056.
However, it is recommended that you seek professional advice on taxation obligations from a suitably qualified tax advisor in both your own country and in New Zealand. Advice may include: demystifying the New Zealand tax system; keeping records; filing dates; payment dates; Double Tax Agreements. Generally, the production will not give you specific advice on tax related matters.
Do I need an Inland Revenue Number?
If you are required to pay New Zealand tax then you will need an Inland Revenue Department (IRD) number. Use either of the following forms to apply for an IRD number IR742, IR744
You can apply for an IRD number from overseas or in New Zealand. You will need to prove you have a fully functioning bank account or completed a due diligence form IR997. The purpose of this form is for anti-money laundering purposes.
Do I need a New Zealand bank account?
Not necessarily. Typically Production can pay into a foreign bank account. However, the time it takes for funds to leave a productions bank account and land in your foreign bank account may vary and as funds may go via an intermediary bank.
If you are required to pay New Zealand income tax then you will need a New Zealand bank account or provide a letter confirming that a reporting entity has performed due diligence . The process of obtaining a bank account can take time so it is prudent to start the process as soon as possible.
Typically you will need your passport , utility bill or other document confirming your place of residence. The production should be able to guide you as they may have a relationship with various banks. How long you stay in New Zealand will determine your tax obligations (Days measured from day you first arrive to the date you leave - scouting and similar trips excluded)
92 days or less
May be exempt from NZ Income tax, withholding tax and Goods and Services Tax (GST). NZ withholding tax will not be deducted from your income (including per diems) and you do not need to apply for an exemption from withholding tax. However, income derived in New Zealand will be taxed in the country in which the individual is a resident.
Between 93 and 183 days
May be exempt from NZ Income tax if you do not have a Fixed Base or Permanent Establishment. If you meet the requirements then apply for a certificate of exemption from withholding tax. Please note this exemption also applies to per diems IR197
More than 183 days or have a fixed base or permanent establishment
You will be required to pay tax and meet compliance obligations in New Zealand.
NZ Tax SystemThere are 3 key taxes to consider:
1 Income tax This is the tax you pay on your gross income. The final year is from 1 April to 31 March each year. An IR3 form is used to declare your income and associated expenses.
2 Withholding tax (WT) Is tax deducted from your income and offset against your annual income tax payable
3 Good and Services Tax (GST) Is a 15% tax added to the price of most goods and services.
An Individual's (person, company or entity) liability for New Zealand tax is determined by residence status. An Individual can be a resident, transitional resident, or a non-resident for tax purposes.
Resident of New Zealand for tax purposes. An individual who is present in New Zealand for more than 183 days in any 12 month period. The general rule is worldwide income is assessable.
Transitional resident of New Zealand for tax purposes. Is an individual who has been a non-resident for 10 years prior to arriving in, or returning to New Zealand
Non-resident of New Zealand for tax purposes (183 day rule). Is an individual who spends 183 days or less in any 12 month period in New Zealand and does not have a permanent place of abode in New Zealand. The general rule is your New Zealand tax obligation is from New Zealand income sources only.
There are various types of non-residents:
Non-resident contractor: If you are a crew member who works behind the scenes and contracted to provide services or equipment then you are a non-resident contractor.
Non-resident Entertainer: If you perform in front of a camera you are a non-resident entertainer.
Box Rentals and Equipment
If you are bringing rental equipment or box rental into New Zealand for which you receive payment. That payment will be treated as income earned and the NZ tax rules apply. However, due to double tax agreements between New Zealand and other countries you may or may not have to pay income tax and/or withholding tax
Source: https://www.classic.ird.govt.nz/industry-guidelines/screen-production/screenprodindustry-equipmentrentals.html
Fixed Base Or Permanent Establishment
A fixed place of business through which the business of a non-resident is wholly or partly carried on.
Compliance Obligations
The New Zealand income tax year is from 1 April to 31 March and a tax return is required each year by the 7 July following the tax year. If you engage a tax agent then the tax return date can be extended to the 31 March following the tax year.
Goods and Services Tax (GST)Is a tax added to the price of most goods and services. You may need to register for GST if you expect your annual turnover to be more than NZ$60,000 and you will be here for more than 6 months. There will be regular filing requirements and may be penalised if returns or payments are late.
Registering for GST
You will need an IRD number and bank account for GST refunds.
Source: https://www.ird.govt.nz/gst/registering-for-gst/register-for-gst
Accident Compensation Corporation (ACC) Levies
If you are required to pay income tax then you will also be required to pay ACC levies. The amount payable is based on your income. You will be sent an invoice after you file your income tax return.
Per Diems
If income is subject to Withholding tax, your per diems will also be subject to the same to the same rate of New Zealand withholding tax. However, a withholding tax exemption can apply to part or all of the first $80 per day of your diems.
Fringes There are no union obligations or personal benefit such as holiday pay, healthcare or superannuation.
FAQ - Overseas Crew Member
Do I need a New Zealand accountant to file my New Zealand tax return.
No. The IRD provides information on your tax obligations. However, it is strongly recommended you seek tax advice from a suitably qualified tax agent in both your own country and in New Zealand.
How long can I stay and work here? (Visa issue)
Some Visa work instructions specify the duration and can also be linked to the duration of the offer of employment.
Source: https://www.immigration.govt.nz/documents/forms-and-guides/inz1187.pdf
Does the 14-day rule affect my tax obligations as a crew member?
No, this rule applies to screen incentives only, specifically Qualifying New Zealand Production Expenditure. A crew member who travels to New Zealand must work on the production for at least 14 days in total. This period does not include any days off. For example, a 5-day shoot plus 2 days off count as 5 days. Source: https://www.nzfilm.co.nz/international/screen-incentives
How long can I work here before I have to pay New Zealand tax?
If you are in New Zealand for 92 days or less you will not be required to pay tax. However, between 92 days and 183 day you may be required to pay tax. After 183 days you will be required to pay tax.
I’ve been here before. How many of my previous days apply to my 183 days?
In any 12 month period, you’re considered to be a New Zealand tax resident from the first day (or part day) you arrive. The 183 days don’t have to follow each other. For example, if you come to New Zealand for 10 days in April and then return for 20 days in September of the same year, it will be counted as 30 days.
What forms need to be filed on my behalf for a tax waiver if I’m here less than 183 days.
If you are in New Zealand for 92 days or less you do not need to apply for an exemption. However, If you are here between 93 days to 183 day and you meet the requirements then apply for a certificate of exemption from withholding tax. Please note this exemption also applies to per diems IR197
If I’m going to be here more than 183 days what do I have to do? Open a New Zealand bank account and get an IRD number?
Yes, if you are required to pay tax in New Zealand you will need an IRD number (Tax filing number). To get an IRD number you will also need a bank account.
How much tax should I have deducted from my paycheck to go towards my New Zealand tax exposure.
15% is regular but that probably won’t be enough.
If you spend less than 183 days the rate is 15%. If you spend more than 183 days in New Zealand then the applicable rate is 20%. If you think the standard rate is still too low then use the Tax Rate Estimation Tool For Contractors
I have more questions regarding Non-resident Tax related information. Who do I contact?
Contact a Public Accountant or the Inland Revenue Department. Non-resident Contractors Unit at nr.contractors@ird.govt.nz or phone 64 4 890 3056.
The following information relates to foreign crew members considering working in New Zealand. It is of a general nature only and provides some key points to consider before working in New Zealand. It is essential to obtain professional tax and Visa advice in your home country and in New Zealand from suitably qualified organisations.
Do I need an accountant?
You do not need an accountant to meet your tax obligation in New Zealand. The Inland Revenue Department (IRD) provide information online or over the phone on your tax obligations and entitlements. For more information contact the Non-resident Contractors Unit at nr.contractors@ird.govt.nz or phone 64 4 890 3056.
However, it is recommended that you seek professional advice on taxation obligations from a suitably qualified tax advisor in both your own country and in New Zealand. Advice may include: demystifying the New Zealand tax system; keeping records; filing dates; payment dates; Double Tax Agreements. Generally, the production will not give you specific advice on tax related matters.
Do I need an Inland Revenue Number?
If you are required to pay New Zealand tax then you will need an Inland Revenue Department (IRD) number. Use either of the following forms to apply for an IRD number IR742, IR744
You can apply for an IRD number from overseas or in New Zealand. You will need to prove you have a fully functioning bank account or completed a due diligence form IR997. The purpose of this form is for anti-money laundering purposes.
Do I need a New Zealand bank account?
Not necessarily. Typically Production can pay into a foreign bank account. However, the time it takes for funds to leave a productions bank account and land in your foreign bank account may vary and as funds may go via an intermediary bank.
If you are required to pay New Zealand income tax then you will need a New Zealand bank account or provide a letter confirming that a reporting entity has performed due diligence . The process of obtaining a bank account can take time so it is prudent to start the process as soon as possible.
Typically you will need your passport , utility bill or other document confirming your place of residence. The production should be able to guide you as they may have a relationship with various banks. How long you stay in New Zealand will determine your tax obligations (Days measured from day you first arrive to the date you leave - scouting and similar trips excluded)
92 days or less
May be exempt from NZ Income tax, withholding tax and Goods and Services Tax (GST). NZ withholding tax will not be deducted from your income (including per diems) and you do not need to apply for an exemption from withholding tax. However, income derived in New Zealand will be taxed in the country in which the individual is a resident.
Between 93 and 183 days
May be exempt from NZ Income tax if you do not have a Fixed Base or Permanent Establishment. If you meet the requirements then apply for a certificate of exemption from withholding tax. Please note this exemption also applies to per diems IR197
More than 183 days or have a fixed base or permanent establishment
You will be required to pay tax and meet compliance obligations in New Zealand.
NZ Tax SystemThere are 3 key taxes to consider:
1 Income tax This is the tax you pay on your gross income. The final year is from 1 April to 31 March each year. An IR3 form is used to declare your income and associated expenses.
2 Withholding tax (WT) Is tax deducted from your income and offset against your annual income tax payable
3 Good and Services Tax (GST) Is a 15% tax added to the price of most goods and services.
An Individual's (person, company or entity) liability for New Zealand tax is determined by residence status. An Individual can be a resident, transitional resident, or a non-resident for tax purposes.
Resident of New Zealand for tax purposes. An individual who is present in New Zealand for more than 183 days in any 12 month period. The general rule is worldwide income is assessable.
Transitional resident of New Zealand for tax purposes. Is an individual who has been a non-resident for 10 years prior to arriving in, or returning to New Zealand
Non-resident of New Zealand for tax purposes (183 day rule). Is an individual who spends 183 days or less in any 12 month period in New Zealand and does not have a permanent place of abode in New Zealand. The general rule is your New Zealand tax obligation is from New Zealand income sources only.
There are various types of non-residents:
Non-resident contractor: If you are a crew member who works behind the scenes and contracted to provide services or equipment then you are a non-resident contractor.
Non-resident Entertainer: If you perform in front of a camera you are a non-resident entertainer.
Box Rentals and Equipment
If you are bringing rental equipment or box rental into New Zealand for which you receive payment. That payment will be treated as income earned and the NZ tax rules apply. However, due to double tax agreements between New Zealand and other countries you may or may not have to pay income tax and/or withholding tax
Source: https://www.classic.ird.govt.nz/industry-guidelines/screen-production/screenprodindustry-equipmentrentals.html
Fixed Base Or Permanent Establishment
A fixed place of business through which the business of a non-resident is wholly or partly carried on.
Compliance Obligations
The New Zealand income tax year is from 1 April to 31 March and a tax return is required each year by the 7 July following the tax year. If you engage a tax agent then the tax return date can be extended to the 31 March following the tax year.
Goods and Services Tax (GST)Is a tax added to the price of most goods and services. You may need to register for GST if you expect your annual turnover to be more than NZ$60,000 and you will be here for more than 6 months. There will be regular filing requirements and may be penalised if returns or payments are late.
Registering for GST
You will need an IRD number and bank account for GST refunds.
Source: https://www.ird.govt.nz/gst/registering-for-gst/register-for-gst
Accident Compensation Corporation (ACC) Levies
If you are required to pay income tax then you will also be required to pay ACC levies. The amount payable is based on your income. You will be sent an invoice after you file your income tax return.
Per Diems
If income is subject to Withholding tax, your per diems will also be subject to the same to the same rate of New Zealand withholding tax. However, a withholding tax exemption can apply to part or all of the first $80 per day of your diems.
Fringes There are no union obligations or personal benefit such as holiday pay, healthcare or superannuation.
FAQ - Overseas Crew Member
Do I need a New Zealand accountant to file my New Zealand tax return.
No. The IRD provides information on your tax obligations. However, it is strongly recommended you seek tax advice from a suitably qualified tax agent in both your own country and in New Zealand.
How long can I stay and work here? (Visa issue)
Some Visa work instructions specify the duration and can also be linked to the duration of the offer of employment.
Source: https://www.immigration.govt.nz/documents/forms-and-guides/inz1187.pdf
Does the 14-day rule affect my tax obligations as a crew member?
No, this rule applies to screen incentives only, specifically Qualifying New Zealand Production Expenditure. A crew member who travels to New Zealand must work on the production for at least 14 days in total. This period does not include any days off. For example, a 5-day shoot plus 2 days off count as 5 days. Source: https://www.nzfilm.co.nz/international/screen-incentives
How long can I work here before I have to pay New Zealand tax?
If you are in New Zealand for 92 days or less you will not be required to pay tax. However, between 92 days and 183 day you may be required to pay tax. After 183 days you will be required to pay tax.
I’ve been here before. How many of my previous days apply to my 183 days?
In any 12 month period, you’re considered to be a New Zealand tax resident from the first day (or part day) you arrive. The 183 days don’t have to follow each other. For example, if you come to New Zealand for 10 days in April and then return for 20 days in September of the same year, it will be counted as 30 days.
What forms need to be filed on my behalf for a tax waiver if I’m here less than 183 days.
If you are in New Zealand for 92 days or less you do not need to apply for an exemption. However, If you are here between 93 days to 183 day and you meet the requirements then apply for a certificate of exemption from withholding tax. Please note this exemption also applies to per diems IR197
If I’m going to be here more than 183 days what do I have to do? Open a New Zealand bank account and get an IRD number?
Yes, if you are required to pay tax in New Zealand you will need an IRD number (Tax filing number). To get an IRD number you will also need a bank account.
How much tax should I have deducted from my paycheck to go towards my New Zealand tax exposure.
15% is regular but that probably won’t be enough.
If you spend less than 183 days the rate is 15%. If you spend more than 183 days in New Zealand then the applicable rate is 20%. If you think the standard rate is still too low then use the Tax Rate Estimation Tool For Contractors
I have more questions regarding Non-resident Tax related information. Who do I contact?
Contact a Public Accountant or the Inland Revenue Department. Non-resident Contractors Unit at nr.contractors@ird.govt.nz or phone 64 4 890 3056.