New Zealand Foreign Contractor Withholding Tax In Harris
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Corporations and individuals engaged in business are required to withhold the appropriate tax on income payments to non-residents, generally at the rate of 25% in the case of payments to non-resident foreign corporations and for non-resident aliens not engaged in trade or business (see the Income determination section ...
Non-resident withholding tax is imposed on every person who derives non-resident withholding income such as interest and dividends. NRWT is generally a final tax on such income. Non-resident withholding tax is imposed on interest at 15 percent, and dividends at 30 percent or 0 percent if fully imputed.
NRCT is deducted at a default rate of 15% on any contract activity or service payment.
Tax Figures in New Zealand Grossed IncomeTax Rate (%) 0-14,000 10.5% >14,000-48,000 17.5% >48,000-70,000 30% >70,000 33%
Withholding tax on payments to non-resident contractors The default rate is currently 15%. Higher rates are used if the form is not complete. These are called 'no-notification' rates. You will need an IRD number unless you have full tax relief under a treaty between New Zealand and your country of tax residence.