The table below lists interpretation guidelines and interpretation statements issued in 2019 alphabetically by title.
Where a non-resident entertainer or sportsperson carries out an activity or performance in New Zealand, the income that they earn from that activity or performance will usually be subject to tax in New Zealand. However, in certain circumstances, s CW 20 of the Income Tax Act 2007 provides non-resident entertainers and sportspersons with an exemption. This statement considers s CW 20, and the circumstances in which the exemption will apply. This statement is primarily intended to assist those who are paying non-resident entertainers to decide whether the exemption in s CW 20 applies so that payers do not need to withhold tax from payments made. However, it may also be of assistance to non-resident entertainers who are unsure about whether their income is exempt.Date of issue: 14 June 2019
This item makes minor amendments to and replaces IS 18/03 Income Tax – Attribution Rule for Income from Personal Services. The updated item clarifies what income is included in the various threshold tests, and that the $70,000 threshold test includes all sources of the working person’s income (not only personal services income). An example is included to show how this works. Other minor clarifications relate to the associated entity’s income being from the provision of personal services, and also in respect of the relevant depreciable property.Date of issue: 17 April 2019
IS 19/01 considers when tax must be withheld from directors’ fees paid to non-residents, and discusses when directors’ fees paid to non-residents are considered to have a New Zealand source. It then considers when and how much tax must be withheld and paid to the Commissioner, if withholding is required. The statement has a related operation position – see 'operational positions' in the left-hand menu.Date of issue: 28 February 2019