Paying your own income tax

As a contractor, you are self employed. This means that you are responsible for your income tax. To find out more about what it means to be self employed and your tax obligations, check out the following link.

Paying your own income tax - on the IRD website

Witholding Tax

New IRD rules implemented in April 2017 require withholding tax to be deducted from payments made to contractors when they work through a recruitment agency. The rate of withholding tax is elected by the contractor on a Tax Rate Notification for Contractors form (IR330C) with a minimum rate of 10%. Read more about understanding Withholding Tax (otherwise known as Schedular Payments).

Schedular Payments - on the IRD website

Registering for GST

You must register for GST (goods and services tax) if your annual turnover will be more than $60,000 in a 12 month period or is expected to go over $60,000 for the next 12 months. To read more about GST and what you need to do to register.

Registering for GST - on the IRD website

ACC Levy Payments as a self employed worker

ACC provides injury cover as soon as you start self employment. Your levies each year are estimated using your income from the previous year. In your first year you will receive two invoices, one for levies for the past year and one for the next year. ACC’s levy calculators help you estimate what your levy invoices might be.

ACC Levy Payments - on the ACC website

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