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Double taxation agreements (DTAs) with other countries or territories generally provide that a non-resident company with a permanent establishment in New Zealand will be subject to New Zealand tax on income derived there. See 5.3.3. The list of New Zealand DTAs can be accessed via the 'Tax treaties' page on the Inland Revenue website. Note that the Slovak double tax treaty comes into force from 1 November 2024.

Where no PE exists, if the employee is resident for tax in New Zealand, by default they will become personally liable to file and pay taxes monthly within New Zealand as an IR56 taxpayer (see 5.3.5). As a result, they must claim any allowable relief via their tax return, which will be the lesser of:

1. Ìý

   •ÌýÌýÌýÌý tax paid in the other country,

2. Ìý

   •ÌýÌýÌýÌý tax that would need to be paid in New Zealand on the same income, or

3. Ìý

   •ÌýÌýÌýÌý a limit defined in the DTA for the other country

Inland Revenue Booklet IR 295 – Taxes and duties – An introduction to New Zealand's tax system