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Request for PAYE exemption on schedular payments IR332

(published June 2008) 

About this form

Complete this form if you are in business and want a PAYE exemption on schedular payments you receive. This service can also be completed online.

Adobe Acrobat PDF | 89kb | 2 pages

This form can be completed on-screen by typing content directly into the PDF document. Once you have completed the form it is important that you print it out as you will not be able to save the information you enter into the form.

When to use this form

You can use this form if you are in business, receive income that is subject to deductions under Schedule 4 of the Income Tax Act 2007, and have a good record for filing returns and making payments.

Horticulture and viticulture industries

From 1 April 2006, companies operating in the horticultural and viticultural industries are required to have schedular payments deducted for work on or in connection with land used or intended to be used for horticulture or viticulture (including the supply of labour), such as:

  • picking and packing of fruit or grapes
  • pruning and thinning of fruit trees or vines.

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 substantially for labour on land in connection with:

  • fruit crops
  • orchards
  • vegetables, or
  • vineyards.

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.

Example
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 companies, trusts, individuals and partnerships carrying out this type of work can apply for a certificate of exemption or a special tax code.

Find out more about the recent legislation changes impacting the horticulture and viticulture industries.

What you will need
  • Your IRD number
  • Copies of any written contracts that you are operating under.

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After you finish

Please print, sign and post the completed form to your nearest Inland Revenue office.

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