Many contractors make Schedular Tax Payments. These payments used to be known as Withholding Tax and are a kind of self employment PAYE where your employer is also your customer.

Inland Revenue has made the following changes effective from 1 April 2017:
  • For contractors currently making Schedular Payments, they can elect their own tax rate - starting at 10% for NZ residents and 15% for non-NZ residents; and
  • The Schedular Payments option now must be used by contractors working for labour-hire firms. This also applies to those working for the labour hire firm under a company, trust or partnership, and;
  • Contractors not covered by the Schedular Payments rules now have the option of making voluntary withholding tax payments; and
  • There is a new form - IR330C for contractors. This form is used by those on self-management tax payment schemes
For more information about employment legislation and requirements, contact April Jenkin on 407 7117.