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Deducting tax from schedular payments

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You need to deduct tax from most schedular payments.

You deduct tax at the rate shown on the Tax rate notification for contractors – IR330C. If the contractor has not given you an IR330C, deduct tax at the no-notification rate for their activity.

Some contractors will have a tailored tax rate certificate. The contractor needs to complete an IR330C, showing their tailored tax rate. They also need to show you their tailored tax rate certificate.

Some other contractors are exempt from having tax deducted from their payments:

  • resident contractors who have a certificate of exemption
  • non-resident contractors who are automatically exempt or who have a certificate of exemption
  • non-resident entertainers and sportspeople who we have approved an exemption for.