Superyachts and other visiting pleasure craft non-resident crew usually don’t pay income tax.

If you’re a non-resident crew member of a pleasure craft, you won’t have to pay income tax if:

·       you perform services for a person who is not resident in New Zealand, and

·       the pleasure craft is a temporary import under the Customs Act, and

·       the pleasure craft is not owned by a New Zealand resident or a controlled foreign company, and

·       you are not present in New Zealand on more than 365 days in any two-year period, and

·       you are not otherwise a NZ tax resident under NZ tax rules, and

·       you are not in New Zealand unlawfully

If unclear on these rules please check through a local tax adviser or yacht agent.

Find out more in the Visitor’s Tax Guide (IR294) or go to Immigration New Zealand’s website
www.immigration.govt.nz

Taxation of income of crews for charter yachts

If the country of residence of the employer does not have a Dual Tax Agreement with New Zealand, 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.