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IR3NR Non-resident passive income


NRWT is deducted from a non-resident’s New Zealand income. The types of income (non-resident passive income) and the maximum rates of NRWT are:

  • dividends 30%

  • interest 15%

  • royalties 15%.

Expenses can’t be claimed against non-resident passive income.

Non-resident passive income has been extended to include non-resident financial arrangement income (NRFAI). NRFAI applies in certain circumstances where there is a financial arrangement between related parties.

Further information is available on the Inland Revenue website in Tax Information Bulletin (TIB) Vol 29 No 5.

If you’re a non-resident and have a “fixed establishment” in New Zealand, interest isn’t liable for NRWT but you have to include it in your return. A fixed establishment is a fixed place where a non-resident has a business, such as a shop, farm or factory. It doesn’t include property that produces rental income only.

New Zealand has double tax agreements (DTAs) with a number of countries. These agreements may allow for different rates—you can check the rates at

If you need more information you can check NRWT on the Inland Revenue website or contact Inland Revenue.

Use the “other countries” rates if:

  • the country you live in isn’t on the list

  • you don’t know your country of residence

  • you have no country of residence.

You don’t need to send in a return if:

  • your only New Zealand income was from interest, dividends or royalties, and

  • NRWT has been deducted at the correct rate, or

  • If your interest income has been zero-rated under the approved issuer levy (AIL) rules. See Approved issuer levy (AIL) for details.

If you aren’t sending in a return, please write to Inland Revenue so they can record that:

  • NRWT/AIL has been deducted correctly, or

  • you’re no longer a non-resident, or

  • you no longer receive any New Zealand-sourced income.

This will save Inland Revenue from contacting you later. Remember to write your name and IRD number on the letter.

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