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Industry guidelines Ngā aratohu ahumahi

Entertainer, contractor or employee?

Provisonal tax

All individuals (not companies) who work in the screen production industry on a contract for services basis are required to have withholding tax deducted from the contract payments they receive.

The rate these deductions are to be made from payments to self-employed resident contractors is 20% of the total contract payments you receive.

Entertainers

You're an entertainer for tax purposes if you perform in public or in front of a camera. This can include radio, television or film performances and appearances with you as:

  • actor
  • musician
  • singer
  • dancer
  • compere
  • other artiste or entertainer

as a professional or as an amateur, alone or with others.

The tax responsibilities of resident entertainers differ from those of non-resident entertainers.

Are you a self-employed contractor or an employee?

You are most likely to be a contractor if:

  • you are employed on a contract for service basis and don't receive salary or wages
  • your work routines and timeframes aren't usually controlled
  • you are not paid sick pay or holiday pay
  • you are able to employ staff or subcontract work
  • you have a written contract for service.

If these don't apply to you, it's likely that you're an employee.

Generally, all workers in the screen production industry who perform work behind the camera are treated as contractors. These can include positions like lighting or sound technicians, administrative or payroll personnel, producers, wardrobe and so on.

If you're not sure whether you're a contractor or an employee or you need some help, see our booklet Self-employed or an employee? (IR336) or phone us on 0800 SCREEN (0800 727 336).

The tax responsibilities of self-employed contractors who are New Zealand residents differ from those of non-resident contractors.