Tax on schedular payments

Employers must deduct tax on schedular payments (formerly withholding payments) from payments made to self-employed contractors, and to companies operating in the horticultural and viticultural industries unless the contractor holds a current certificate of exemption from tax on schedular payments.

Taxing activities called schedular payments (formerly withholding payments)

There is a range of activities that are liable for tax on schedular payments. The tax rate differs according to the activity.

Tax on Schedular payments (formerly withholding payments)

Self-employed contractors, and companies operating in the horticultural and viticultural industries are usually liable to pay tax on schedular payments (formerly withholding payments). Employers must deduct tax at a flat rate from payments made to contractors. Contractors are responsible for their own ACC earner's levy and student loan repayments.

Certificates of exemption from withholding tax (IR331)

Employers do not need to deduct withholding tax from payments made to contractors who hold a current certificate of exemption from withholding tax. Certificates must be renewed by the contractor each year.

Date published: 12 Feb 2007

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