Employment Tax

New Zealand | New tax exemption introduced for non-resident remote workers

Summary

On March 30, 2026, New Zealand enacted the Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Act 2026, introducing an income tax exemption for qualifying non-resident visitors working remotely in New Zealand for foreign employers.

The detail

The exemption applies from April 1, 2026, where the full criteria are met.

Key details:

• Income tax exemption for visitors considered non-residents for tax purposes according to New Zealand residency rules and who work remotely for foreign employers in New Zealand
• 275 day limit within a rolling 18-month period applies
• Must be working lawfully in New Zealand
• Cannot be undertaking any work that is related to New Zealand (i.e. for a New Zealand resident employer or branch, selling good/services to New Zealand persons, or work that requires a physical presence in New Zealand)
• Income must still be taxable in the country of residence
• Cannot be receiving any family assistance entitlements including their spouse/partners (e.g. working for families)

What this means 

Employers may benefit from having no PAYE, FBT, ACC or KiwiSaver obligations when they have employees who are true remote workers or digital nomads who wish to stay in New Zealand for longer periods of time but still remain non-resident. It will not apply for traditional assignments or where the employer requires the employee to be in New Zealand.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Suzie Chichester
Managing Director

Naomi Burwell
Director

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