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Inland Revenue

Tax Policy

Consultation document
Published 5 October 2021

Cross-border workers: issues and options for reform

An officials’ issues paper setting out a range of issues facing employers and payers of cross-border workers.

Proposals include:

  • enabling more flexible arrangements for employees included on a shadow payroll
  • clarifying when PAYE, FBT and ESCT obligations arise and when those obligations can be transferred to the employee or a related New Zealand entity
  • changing the NRCT withholding thresholds, and
  • introducing a non-resident contractor reporting requirement and making NRCT more flexible.