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Inland Revenue

Tax Policy

Non-resident entertainer

Clause 386


(35 – PricewaterhouseCoopers)

Section RD 19(2) should not be repealed as it confirms that the income tax liability of a non-resident entertainer should equal the amount of tax withheld, if the only amount of income derived by the entertainer in a tax year is from a schedular payment.


The policy for the taxation of a person whose only New Zealand-sourced income is derived for services as a non-resident entertainer is that the person may choose to either file a return of income and claim expenses, or elect to be non-filing taxpayer.

Section RD 19(2) as currently drafted prevents a non-resident entertainer from electing to file an annual return of income.

The repeal of section RD 19(2) is linked to the amendment to the definition of non-filing taxpayer. Together, these amendments are intended to ensure that a non-resident entertainer, whose only New Zealand-sourced income is for services provided as a non-resident entertainer, is permitted to elect to be a non-filing taxpayer.

Under the Income Tax Act 2007, the income tax liability for a non-filing taxpayer is equal to the amount of tax withheld from the income of the person. That is the outcome sought by the submission and it is therefore unnecessary to retain section RD 19(2).


The submission be declined.