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Budget 2022: The Government has announced Budget 2022, which includes changes to child support payments. Find out more on our Tax Policy website

Budget 2022: The Government has announced a Cost of Living Payment, which will be paid from 1 August 2022. You do not need to apply for this payment. If you are eligible, we’ll pay it into your bank account. Find out more

Some contractors can apply for a certificate of exemption. These contractors pay their own tax instead of having the tax deducted from each schedular payment.

Certificates of exemption can only be used for schedular payments. They cannot be used for salary or wages.

Who can apply for a certificate of exemption?

New Zealand tax residents can apply for a certificate of exemption if they:

  • are in business
  • have a good record of filing tax returns and paying tax
  • get schedular payments from a payer other than a labour hire business under a labour hire arrangement.

If you're a New Zealand tax resident and you get schedular payments from a labour hire business under a labour hire arrangement, you'll need to apply for a 0% special tax rate instead.

If you're a non-resident contractor and you get schedular payments from a labour hire business under a labour hire arrangement, you can apply for a certificate of exemption.

Renewing a certificate of exemption

Contractors need to renew their certificate of exemption every tax year. We send a renewal notice in January or February so the contractor has time to renew their certificate before the new tax year starts on 1 April.

Last updated: 17 Jun 2021
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