New Zealand Tax Agency Clarifies Tax Residency Rules Due to Coronavirus

The New Zealand Inland Revenue April 22 clarified tax residency rules due to the coronavirus pandemic. The agency clarified that: 1) tax residency status isn’t affected by a company’s directors being stranded in New Zealand if there’s no change to where the real business is conducted; 2) a nonresident company won’t become a resident based on a short-term fixed establishment in New Zealand; 3) individuals stranded in New Zealand for 183 days or more won’t become tax residents if they leave soon after the pandemic ends; 4) the 92-day requirement for nonresidents to have pay-as-you-earn (PAYE) withheld is waived for ...