IRD is about to put into effect new tax rules for dealing with contractors. Here’s our flyer to keep you up to date.
Summary of Withholding Tax changes
In summary:- Changes take effect from 1 April 2017
- Applies to the Labour Hire industry
- Applies to all types of entities (sole traders, companies, partnerships & trusts)
- All contractors must be taxed at source
- Declared tax rate is 20%
- Non-declared tax rate is 45%
