Contractors - IRD changes from 1 April 2017

From 1 April 2017, GBL Personnel and other labour-hire firms/recruitment agencies are required to deduct withholding tax when we make payments to individual contractors and companies used by contractors.  This does not include temp employees who are paid weekly wages.
 

What we need from you

It's your responsibility to ensure we have your correct tax rate.

You will need to supply GBL with a Tax Rate Notification for Contractors Form (IR330C) which will confirm your deduction rate.  We will then deduct the tax from payments made to you from 1 April 2017, even if the work was completed before this date.

If you don’t supply us with an IR330C, GBL will need to deduct at the default rate of 45%.
 

Further information

You will need to get up to speed with these changes – so we encourage you to refer to the IRD website or seek professional advice from your accountant.
 

IRD - Links

https://www.ird.govt.nz/contractors/

https://www.ird.govt.nz/contractors/labour/labour-hire-business-arrangements.html