Source: https://rivet.global/blog/new-zealand-companies-paying-overseas-contractors-nrct
Published: 2026-10-22 · Updated: 2026-10-22 · By William Sunjo M.

# New Zealand companies paying overseas contractors: when NRCT applies and when it does not

New Zealand's non-resident contractors' tax applies to some payments to non-residents for work done in NZ. When it applies, exemptions, and paying contractors abroad.

## Key takeaways

- Non-resident contractors' tax (NRCT) applies to contract payments to non-residents for work or services performed in New Zealand.
- The standard NRCT rate is 15 percent for companies and individuals who provide a tax code declaration, with higher rates otherwise.
- Contractors can apply to Inland Revenue for an exemption certificate, often where a tax treaty means no NZ tax is due.
- Payments for work performed wholly outside New Zealand are generally outside NRCT.

An Auckland food processing company hires a Sydney engineering firm to commission a new production line on site for three weeks, and a designer in Manila to redo its packaging remotely. The Manila designer's invoice is paid in pesos with nothing deducted. The Sydney firm's invoice triggers a non-resident contractors' tax check, because the work happened in New Zealand.

## What NRCT is

Non-resident contractors' tax (NRCT) is a withholding tax on contract payments to non-residents for work or services performed in New Zealand. The payer deducts it and pays it to Inland Revenue.

## Rates

The standard rate is 15 percent where the contractor provides a tax code declaration. Higher rates apply without one.

## Exemptions

Non-resident contractors can apply to Inland Revenue for a certificate of exemption, often granted where a double tax agreement means they have no New Zealand tax liability, for example a contractor without a permanent establishment in New Zealand and staying under treaty time limits. With a certificate, the payer deducts no NRCT. Thresholds also apply for small or short engagements.

## Work done abroad

Payments to contractors for work performed wholly outside New Zealand are generally outside NRCT. Remote design, development and consulting done from Manila, Bengaluru or Buenos Aires usually fall here.

## Records

Keep contracts, invoices, evidence of where the work was done, and payment records with the rate used.

## Paying contractors

Pay contractors abroad in their own currency on local rails where possible, so they receive the agreed amount.

## Paying into New Zealand: the local rail

| What | Detail |
|---|---|
| Local rail | Interbank transfers through the Settlement Before Interchange system |
| Run by | Payments NZ, settled at the Reserve Bank |
| Settlement | Within the hour, every day of the year since 2023 |

Source: [Payments NZ](https://www.paymentsnz.co.nz/). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet does not calculate or file NRCT. A Rivet business account pays contractors in 120+ countries in local currency where available, with bulk payouts, rates shown before you confirm and, from the Growth plan, second approvals. Rivet is not a bank; regulated partner institutions hold the funds.

## Questions

### When does NRCT apply?

When a New Zealand payer makes a contract payment to a non-resident contractor for work or services performed in New Zealand, subject to thresholds and exemptions.

### What rate applies?

Generally 15 percent where the contractor gives a tax code declaration, and higher rates where they do not.

### Can contractors get an exemption?

Yes. Inland Revenue can issue a certificate of exemption, for example where a treaty means the contractor has no NZ tax liability.

### Does NRCT apply to remote work done abroad?

Generally no, because the work is not performed in New Zealand.