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.