Industry guidelines: Winemakers
Tax on schedular payments (formerly withholding tax), tax codes, tax rates and workers
Tax on schedular payments is deducted from payments to people who are not employees but work for you on a contract-for-services basis.
From 1 April 2006, schedular payments (formerly withholding payments) made to companies operating in the horticultural and viticultural industries, for services or work related to the "pruning or thinning of fruit trees or vines", or the "picking or packing of fruit or grapes", will also be required to have tax deducted.
These contractors/companies must use a WT tax code. However, they may be eligible for a certificate of exemption or a special tax code
Tax on schedular payments is:
- taxed at a flat rate
- deducted even if the worker is registered for GST.
You must show a WT tax code when you are completing the Employer monthly schedule (IR348) for a schedular payment recipient.
Schedular payments made to contractors/companies in the horticultural and viticultural industries will need to be recorded on the payer's employer monthly schedule, whether they deduct tax or not. The requirement to notify Inland Revenue of the details of the payments only relates to payments made for the specific work mentioned above.
Date published: 01 Jul 2008
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