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About this service
This service is to apply for or renew a certificate of exemption from PAYE on schedular payments, if you meet certain Inland Revenue conditions. It is equivalent to completing the Request for a certificate of exemption from PAYE on schedular payments (IR332) form.
When to use this service
You can apply for a certificate of exemption from PAYE (formerly withholding tax) if you:
- are in business
- receive schedular payments that are subject to a prescribed rate of tax under Schedule 4 of the Income Tax Act 2007
- have a good tax compliance history with Inland Revenue. This means returns are filed and payments are made on time. As an employer, this also means that the correct tax codes are used for employees ie, if an employee doesn’t provide a tax code declaration, then tax is deducted at the no-notification rate of 30 cents in the dollar.
If you're a non-resident contractor please write to us at Private Bag 39984, Wellington or call us on 04 890 3056.
Horticulture and viticulture industries
From 1 April 2006 companies operating in the horticulture and viticulture industries have been able to apply for a certificate of exemption from tax on schedular payments.
From 1 April 2010 any type of contractor (individual, partnership, trust or company) is required to have schedular payments deducted when providing work or services for the supply of labour, or mainly for labour on land in connection with:
- fruit crops
- vegetables, or
This does not include work or services by a:
- post-harvest facility
- management entity under a formal management agreement under which the entity is responsible for payment for the work or services provided.
Company A provides services under a contract which involves a high capital outlay (ie large use of machinery). As this contract is deemed to have a high capital outlay and low labour input, payments made to Company A in this circumstance will not have tax on schedular payments deducted. However, if the use of the machinery was incidental, with the supply of labour making up most of the contract, then payments made to Company A for this contract would have tax on schedular payments deducted.
This means that individuals, trusts, partnerships or companies carrying out this type of work can apply for a certificate of exemption or a special tax code.
What you will need
Your IRD number - if you don't have this call us on 0800 377 774.
After you finish
If you wish to keep a copy for your own records, please print the confirmation page.
This service may require you to send confidential information to Inland Revenue so it is located on a secure part of our website to prevent unauthorised interception. If you are unable to access this service, your browser and/or firewall settings may need updating.
Inland Revenue takes online security very seriously. We have systems in place to protect the information you provide us, and regularly update our standards and technology to provide protection for your personal information.
You play an important role in protecting your information by taking basic precautions to protect your computer and data. You should keep your computer secure, only deal online with people and organisations you know and trust, and check that your personal information travels across the internet on secure connections.
There are many resources about computer security (such as websites, books and magazines) that can help guide you on what security precautions are appropriate for your situation.
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