Taxation
Inland Revenue Department
Taxation of income of crews for non charter yachts
The working crew of visiting yachts who are not ordinarily resident in New Zealand are considered to be non-resident employees and will be exempt from paying taxation for 183 days or less in any one year period if the country of usual residence has a Double Taxation Agreement (DTA) with New Zealand where tax is normally paid in the overseas jurisdiction and the yacht is considered a non fixed base and belongs to a foreign owner or company. If this is not the case, then taxation can be levied by the Inland Revenue Department.
Taxation of income of crews for charter yachts
If the country of residence of the employer does not have a DTA with New Zealand then the employment income will be exempt from tax if they stay in New Zealand for 92 days or less, the New Zealand employment income is taxable in their own country of residence, and the services performed are on behalf of a person who is not a resident of New Zealand.
Goods and Services Tax
A visiting yacht entered on a 'Temporary Import Entry' may purchase goods 'zero rated' of GST if the goods are to form part or equipment for the yacht for safe navigation and exported with the yacht.
Pleasure yachts may enter New Zealand under temporary import licenses, attracting GST at zero rate and no duty (see New Zealand Customs above).
For the latest information on taxation regulations please contact the Inland Revenue or visit their website.
Contact:
Inland Revenue Dept
tel 0800 377 774
fax +64 9 377 1159
web www.ird.govt.nz/
TOP
