Tax codes: Special tax codes
Deductions using special tax codes
How do I know if an employee has a special tax code?
Your employees may present you with a special tax code or deduction rate (IR23) certificate. This certificate will be addressed to either one employer or "to whom it may concern".
What does the IR23 authorise me to do?
The IR23 can authorise you to:
- deduct no tax at all
- deduct tax at a special rate
- make PAYE deductions using a specific code
- deduct ACC earners' levy only, or
- deduct student loan repayments at a specific rate.
The certificate will tell you what deductions to make.
| Note | |
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This certificate will not include any rate for KiwiSaver contributions. KiwiSaver contributions deducted for an employee should be in addition to the rate shown on any IR23 certificate. For example, if the rate shown is 30% and the employee is making KiwiSaver contributions of 4% their total deductions from their salary or wages will equal 34%. | |
Date published: 17 Jan 2007
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