Non-residents income tax applies to an employee who comes to New Zealand, stays less than 183 days in any 12-month period, and who doesn’t have an “enduring relationship” with New Zealand. A non-resident is liable for New Zealand tax on income for personal services performed in New Zealand, and other income from New Zealand sources. (IR 335, IR 292)

As a small business, you must deduct PAYE from wages paid to non-resident employees in the same way as for resident employees.

If you need help in understanding this or any other tax topic, and how it relates to your business please contact us.