Residence is determined by place of incorporation, location of head office, centre of management, or by directors’ exercising control of the company in New Zealand.
Permanent establishment (PE)
Generally, DTAs to which New Zealand is a party define a PE by reference to a fixed place of business through which the company’s business is carried on. A PE can also exist without a fixed place of business if the employees of the overseas company habitually exercise an authority to conclude contracts in New Zealand or provide services in New Zealand for a period of time.
New Zealand recently enacted legislation that defines the meaning of PE for a person or other enterprise that makes in New Zealand a supply of goods or services. For an enterprise that is resident in a country or territory with which New Zealand has a DTA, the meaning of PE is given by the DTA, or by a specific anti-avoidance provision within the New Zealand Income Tax Act (unless the DTA incorporates the OECD's latest PE article). For an enterprise that is resident in a country or territory with which New Zealand does not have a DTA, the meaning of PE is given by the New Zealand Income Tax Act.