Payments to Contractors

Contractors need to provide a IR330C - Tax rate notification for contractors¹. The no notification rate is 45%².

The contractor has to register themselves for GST, if their gross(total before tax) income, including allowances( like for accommodation) and per diems(per day payments for meals and laundry) was more than $60,000 for the last 12 months or likely to be more than $60,000 for the next 12 months.³

1.https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir300---ir399/ir330c/ir330c-2019.pdf

2.https://www.ird.govt.nz/income-tax/withholding-taxes/schedular-payments/making-schedular-payments/deductions-from-payments-to-contractors

3.https://www.ird.govt.nz/roles/screen-production-industry/self-employed-res-contractors