Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Non-resident contractor withholding tax simplified

Non-resident contractors’ withholding tax simplified

The government will simplify the tax rules on payments to non-resident contractors to reduce compliance costs for both employers and contractors, Revenue Minister Michael Cullen announced today.

“The present rules result in employers having to go to disproportionate efforts to withhold tax from the pay of very short-term, non-resident contractors often for small amounts of money or face penalties for failing to do so.

“In many cases, these contractors are relieved of paying New Zealand income tax anyway, by the nature of the double tax agreement between New Zealand and their own country. “At present, contractors who work in New Zealand for fewer than 62 days in a 12-month period and come from a country with which we have a double tax agreement do not have to seek a certificate of exemption from withholding tax.

“That 62-day period will be extended to 92 days, which will help to save time and effort for employers and contractors alike.

“A further change will exempt payments for contract work amounting to less than $15,000 in a 12-month period from non-resident contractors’ withholding tax. Instead, contractors themselves will be responsible for paying any New Zealand tax owing at the end of the year.

“The changes will be made by Order in Council within the next few weeks and will apply from 1 December 2003.

“The government will also be introducing legislative changes in the next taxation bill to reduce both penalties in certain cases and the ‘non-declaration’ withholding tax rate for contractors that are companies,” Dr Cullen said.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On What Triggered The Carnage In Gaza

At last count, 195 Palestinians have reportedly died in the latest round of violence, 55 of them children. Roughly ten times that number have been wounded, and thousands made homeless. On the Israeli side, 8 people have died from rockets fired from Gaza. The imbalance in casualties reflects the vast gap in weaponry between the two sides. The Israelis are carrying out air strikes with impunity on densely populated civilian neighbourhoods... More>>


Budget 2021: Boosts Carbon Neutral Government Commitment

· Budget 2021 delivers $67.4 million to support the transition to a carbon neutral public sector by 2025 · State Sector Decarbonisation Fund receives significant boost to support more schools, hospitals and other government organisations to replace ... More>>

Government: To Rev Up Reductions In Transport Emissions

The Government is calling for feedback on a range of potential policies to eliminate emissions in the transport sector. Transport Minister Michael Wood today released Hīkina te Kohupara – Kia mauri ora ai te iwi - Transport Emissions: Pathways to ... More>>

KiwiSaver: Default Provider Scheme Improvements Slash Fees, Boosts Savings

Hundreds of thousands of New Zealanders will be significantly better off in retirement following changes to the default KiwiSaver scheme, Finance Minister Grant Robertson and Commerce and Consumer Affairs Minister David Clark said today. More>>


Child Poverty: Reports Highlight Need For Ongoing Action

The Government has released the first Annual Report for the Child and Youth Wellbeing Strategy and the second Child Poverty Related Indicators (CPRI) Report, both of which highlight improvements in the lives of children as a result of actions of the Government, ... More>>


PM: Statement On The Speaker And Annual Review Debate

“The serious issue of alleged sexual assault and harassment at Parliament was poorly managed and inappropriately politicised last night. The tone of the debate did not reflect well on Parliament as a whole,” Prime Minister Jacinda Ardern said. ... More>>

Parliament: Mallard Fails To Give Taxpayers A Straight Answer

Trevor Mallard has confirmed he is unfit to be Parliament’s Speaker by failing to answer several important questions relating to the false rape accusation saga that cost taxpayers more than $330,000, Shadow Leader of the House Chris Bishop says. ... More>>

Local Government: Independent Review To Explore Future

Local Government Minister Nanaia Mahuta says an independent review of local government will explore how councils can maintain and improve the wellbeing of New Zealanders in the communities they serve long into the future. More>>





InfoPages News Channels