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Ngā tiwhikete aweretanga mō ngā utunga ā-kirimana Certificates of exemption for schedular payments

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Some contractors can apply for a certificate of exemption. These contractors pay all their tax at the end of the tax year 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
  • receive schedular payments from a payer other than a labour hire business under a labour hire arrangement. 

New Zealand tax residents receiving schedular payments from a labour hire business under a labour hire arrangement need to apply for a 0% special tax rate instead.

Non-resident contractors receiving schedular payments from a labour hire business under a labour hire arrangement are eligible to apply for a certificate of exemption.

Renewing a certificate of exemption

We issue certificates of exemption for up to five years. We look at a contractor's tax record when deciding how long to issue a certificate for.

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.