Remote working in New Zealand: sun, sand, and tax

By Stephen Walker, Emaad Tariq & Tessa Petau-Ah Poe

Working remotely under the new visitor visa rules in New Zealand sounds like a dream come true, doesn't it? The idea of setting up your laptop on the pristine sands of Piha beach, listening to the majestic sound of the Tui while earning a living is certainly appealing. However, before you dive headfirst into this sunny remote working adventure, there are a few key things you need to keep in mind to ensure you stay on the right side of the tax authorities – for both you and your boss!

Understanding the visitor visa rules

Thanks to recent changes in New Zealand's visitor visa rules, working remotely for a foreign employer in beautiful Aotearoa has become more accessible than ever. As of 27 January 2025, all visitor visas now permit employees to work remotely in New Zealand, provided they meet the guidelines set by Immigration New Zealand. This is great news for digital nomads and remote workers seeking a change of scenery.

So whilst navigating the immigration side of things has become easier, it's important to remember that tax rules have not changed and still apply as they always have. So, how will your income be taxed when you start working remotely from New Zealand, especially when you're already subject to taxes in your home country on that income? Let’s take a look.

New Zealand taxation for remote workers

Fortunately, there are two key tax exemptions from New Zealand tax that could apply, depending on the duration of your stay, for either business or pleasure, in New Zealand.

Visiting for 92 days or less

If you are not already a tax resident of New Zealand, and your stay here is 92 days or less in aggregate within any 12-month period, employment income paid to you from offshore is usually exempt from New Zealand tax. This means you can focus on meeting your tax obligations in your home country without being concerned about additional tax requirements in New Zealand.

However, there are two important exceptions to this rule to bear in mind:

1. If your income is not taxed in your home country under a tax system similar to New Zealand’s income tax, the exemption may not apply, and you could be liable for tax in New Zealand.
2. Certain professionals, such as those involved in the entertainment or sporting industries, may not qualify for this exemption. If you fall under this category, seeking upfront advice from a New Zealand tax advisor is strongly recommended.

Visiting for 93 to 183 Days

For visits lasting between 93 and 183 days in aggregate in any 12-month period, if you are a tax resident in a country that has a double tax agreement (DTA) with New Zealand, you may be eligible for further relief from New Zealand income tax on your remote work income.

See here for a current list of 41 countries with which New Zealand has a DTA. The specific terms of each DTA may vary, but generally, they will consider your income exempt from New Zealand tax if certain conditions are met. These conditions typically include:

• Being present in New Zealand for less than 183 days in any 12-month period.
• Ensuring that the payer of your income is not tax resident in New Zealand or that your income is not attributable to a taxable presence (a permanent establishment) they (or you) have in New Zealand.

The concept of a permanent establishment is a complex one, and to understand if this exemption can apply to you, it is important to understand whether the payer of your income has one already in New Zealand, and if not, whether your planned activities and duration of stay in New Zealand could create one for them (or you, if you are a sole trader). If a New Zealand permanent establishment does arise, then the 93-to-183-day exemption above would not apply, and as well as your income being taxable in New Zealand, the payer of your income could also have tax obligations in New Zealand in relation to their business profits. Typically, if you are working remotely in New Zealand on one of these new visas due to personal choice, for the offshore payer, who has no business need for you to be here and has no other presence in New Zealand, the risk of creating a permanent establishment should be low (if you are not habitually undertaking contractual negotiation and signing activities from New Zealand). Again, if you are unsure as to the permanent establishment risks, specific tax advice should be sought.

If visiting for more than 183 days, or an exemption does not apply

While relishing your extended stay in New Zealand, if you come to the realisation that you have exceeded a presence of 183 days in aggregate in any 12-month period or none of the exemptions above can apply to you, things get a bit more complicated. It is very likely your income will become taxable in New Zealand, even if you do not trigger New Zealand tax residency. Where this is the case, and the payer of your income is not otherwise doing business in New Zealand or otherwise reporting payments here, the periodic income reporting and withholding obligations could fall to you instead. In addition, your income may still be subject to withholding tax in your home country and so steps need to be taken in your home country to ensure you do not suffer double taxation, even if temporarily. If this situation applies to you, then you should seek specialist tax advice to ensure you understand how you will be taxed, your compliance obligations both here and back home, and any steps required to minimise exposure to double tax and disruptions to your net cash flow.

As you can see tax residency can be complex and very fact specific, if you have any questions please contact your usual Deloitte advisor.