Income Tax Act 2007

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Schedule 4 Standard rates of tax for schedular payments

ss RD 8, YA 1

Schedule 4 heading: replaced, on 1 April 2017, by section 99(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Part A Payments to non-resident contractors

1

A contract payment that relates to a non-resident contractor’s contract activity or service has a standard rate of tax of 0.15 for each dollar of the payment, if the payment is—

(a)

to the non-resident contractor:

(b)

to an agent of the non-resident contractor:

(c)

to a person acting on behalf of the non-resident contractor.

Schedule 4 part A clause 1: amended, on 1 April 2017, by section 99(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Part B Payments of company directors’ fees, examiners’ fees, honoraria, and other payments

Schedule 4 part B heading: amended (with effect on 1 April 2008), on 7 September 2010, by section 121(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

1

A payment of a company director’s fee, or an examiner’s fee, or an honorarium, has a standard rate of tax of 0.33 for each dollar of the payment.

Schedule 4 part B clause 1: amended, on 1 April 2017, by section 99(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

1B

A payment has a standard rate of tax of 0.33 for each dollar of the payment, if it is for work or services performed by—

(a)

a local government elected representative:

(b)

an official of a community organisation, society, or club:

(c)

a chair or member of a committee, board, or council:

(d)

an official, chair, or member of a body or organisation similar to one described in paragraph (b) or (c).

Schedule 4 part B clause 1B: inserted (with effect on 1 April 2008), on 7 September 2010, by section 121(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Schedule 4 part B clause 1B: amended, on 1 April 2017, by section 99(4) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

2

In this part, examiner’s fee means fees or remuneration for work or services that relate to examining an examination candidate, if the work or services have the following nature:

(a)

setting an examination paper or question:

(b)

marking a candidate’s answer:

(c)

examining a candidate orally:

(d)

examining a candidate’s practical work or performance.

Part C Payments for work or services relating to primary production

1

A payment for work or services referred to in the following paragraphs has a standard rate of tax of 0.15 for each dollar of the payment:

(a)

farming contract work:

(b)

cultivation contract work:

(c)

shearing:

(d)

droving:

(e)
[Repealed]

(f)

forestry or bush work (including bush felling, road and tramway work, removal of timber, undergrowth cutting, burning, or clearing):

(g)

planting or cutting flax:

(h)

work described in section DO 1 or DO 2 that is related to land that is used or intended to be used for farming or agriculture.

Schedule 4 part C clause 1: amended, on 1 April 2017, by section 99(5) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Schedule 4 part C clause 1(b): substituted, on 1 April 2010, by section 579(1)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 4 part C clause 1(e): repealed, on 1 April 2010, by section 579(1)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2

In this part,—

cultivation contract work—

(a)

means work or services provided under a contract or arrangement—

(i)

for the supply of labour, or substantially for the supply of labour; and

(ii)

on or in connection with land that is used or intended to be used for the cultivation of fruit crops, vegetables, orchards, or vineyards:

(b)

excludes work or services provided by—

(i)

a post-harvest facility:

(ii)

a management entity under a formal management agreement under which the entity is responsible for payment for the work or services provided

farming contract work means work that is related to land that is used or intended to be used for farming or agriculture, if the work has the following nature:

(a)

firewood cutting, or post or rail splitting:

(b)

cutting down trees incidental to work under paragraph (a):

(c)

grass or grass seed cutting:

(d)

hedge cutting:

(e)

planting trees:

(f)

planting or cutting flax:

(g)

threshing, chaffcutting, hay making, hay baling, or harvesting or gathering crops

Schedule 4 part C clause 2 cultivation contract work: substituted (with effect on 1 April 2010), on 7 September 2010, by section 121(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Schedule 4 part C clause 2 horticultural contract work: repealed, on 1 April 2010, by section 579(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Part D Payments for commercial cleaning and maintenance work, or for general contracting

1

A payment for commercial cleaning or maintenance work has a standard rate of tax of 0.20 for each dollar of the payment.

Schedule 4 part D clause 1: amended, on 1 April 2017, by section 99(6) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

2

A payment for work or services referred to in the following paragraphs has a standard rate of tax of 0.15 for each dollar of the payment:

(a)

mail delivery or collection:

(b)

transporting school children:

(c)

milk delivery:

(d)

refuse removal:

(e)

caretaking or acting as a guard:

(f)

street or road cleaning.

Schedule 4 part D clause 2: amended, on 1 April 2017, by section 99(7) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

3

In this part,—

commercial cleaning or maintenance work means work or services that are related to schedular commercial land, if the work or services have the following nature:

(a)

cleaning all or part of premises:

(b)

cleaning or laundering plant, vehicles, furniture, furnishings, fittings, or equipment:

(c)

gardening (including grass cutting and hedge cutting):

(d)

destroying vermin:

(e)

destroying weeds

schedular commercial land means land that—

(a)

is not used for farming or agriculture purposes:

(b)

is not a dwellinghouse:

(c)

is not premises that are used exclusively for residential purposes.

Part E Payments for labour-only building work, or for labour-only fishing boat operating

1

A payment for labour-only building work, or for labour-only fishing boat work, has a standard rate of tax of 0.20 for each dollar of the payment.

Schedule 4 part E clause 1: amended, on 1 April 2017, by section 99(8) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

2

In this part,—

labour-only fishing boat work means work or services under a contract, arrangement, or agreement for profit-sharing which is exclusively or substantially for the supply of labour in connection with operating or maintaining a fishing boat that is required to be registered under section 103 of the Fisheries Act 1996

labour-only building work means work or services under a contract or arrangement which is exclusively or substantially for the supply of labour in connection with a building or a construction (including pre-fabrication and pre-cutting for the relevant building or construction), if the work or services have the following nature:

(a)

work or services that, customarily, may form part of the work or services of a carpenter under a building contract:

(b)

work or services connected with roof-fixing, steel-fixing, erecting fences, or laying concrete, bricks, blocks, tiles, slabs, or stones, if the relevant building or construction is not land that is used or intended to be used for farming or agriculture:

(c)

work or services connected with hanging wallpaper, hanging decorative wall coverings or furnishings, or painting or decorating (including plastering):

(d)

work or services connected with installing fibrous plaster, wallboard, insulating material, interior tiles, interior lining, floor tiles, carpet, linoleum, or floor coverings.

Part F Payments for activities related to sports, media, entertainment, and public speaking

Schedule 2 part F heading: amended (with effect on 1 April 2008), on 6 October 2009, by section 579(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

1

A payment of a media contribution fee, or of a promotional appearance fee, has a standard rate of tax of 0.25 for each dollar of the payment.

Schedule 4 part F clause 1: amended, on 1 April 2017, by section 99(9) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

2

A payment that relates to media production work has a standard rate of tax of 0.20 for each dollar of the payment, if part A of this schedule, and clauses 4 and 5 of this part do not apply to the payment.

Schedule 4 part F clause 2: amended, on 1 April 2017, by section 99(10) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

3

A payment of a modelling fee has a standard rate of tax of 0.20 for each dollar of the payment.

Schedule 4 part F clause 3: amended, on 1 April 2017, by section 99(11) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

4

A payment for services connected with a non-resident entertainer providing or performing a Part F activity has a standard rate of tax of 0.20 for each dollar of the payment, if the payment is—

(a)

to the non-resident entertainer:

(b)

to an agent of the non-resident entertainer:

(c)

to a person acting on behalf of the non-resident entertainer.

Schedule 4 part F clause 4: amended, on 1 April 2017, by section 99(12) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Schedule 4 part F clause 4: amended (with effect on 1 April 2008), on 6 October 2009, by section 579(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

5

A payment for services connected with a New Zealand resident providing or performing a Part F activity has a standard rate of tax of 0.20 for each dollar of the payment, if clause 6 does not apply to the payment and it is—

(a)

to the New Zealand resident:

(b)

to an agent of the resident:

(c)

to a person acting on behalf of the resident.

Schedule 4 part F clause 5: amended, on 1 April 2017, by section 99(13) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Schedule 4 part F clause 5: amended (with effect on 1 April 2008), on 6 October 2009, by section 579(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

6

A payment for services connected with a New Zealand resident providing or performing a Part F activity has a standard rate of tax of 0.15 for each dollar of the payment, if the payment relates to shares of riding or driving fees and it is—

(a)

to the New Zealand resident, and the resident is an apprentice jockey or an apprentice driver:

(b)

to an agent of the apprentice jockey or apprentice driver:

(c)

to a person acting on behalf of the apprentice jockey or apprentice driver.

Schedule 4 part F clause 6: amended, on 1 April 2017, by section 99(14) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Schedule 4 part F clause 6: amended (with effect on 1 April 2008), on 6 October 2009, by section 579(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

7

In this part,—

media contribution fee means fees or remuneration, paid to a contributor, that relate to a contribution for television, radio, theatre, stage, or printed media

media production work means work or services that relate to television, videos, or films, if the work or services have the following nature:

(a)

on-set and off-set pre-production work or services:

(b)

on-set and off-set production work or services:

(c)

on-set and off-set post-production work or services

modelling fee means fees or remuneration that relate to modelling, including a personal attendance for any promotional purpose, for photography, for supplying personal photographs, or for supplying personal endorsements or statements

Part F activity means an activity or performance—

(a)

connected with—

(i)

a sporting event or competition:

(ii)

making speeches or giving lectures or talks for any purpose:

(iii)

acting, singing, playing music, dancing, or entertaining generally, for any purpose and whether alone or not; and

(b)

undertaken by a person who meets the requirements of any of the following paragraphs:

(i)

they are not fully or partly sponsored under a cultural programme of an overseas government or the Government of New Zealand:

(ii)

they are not an official representative of a body that administers a game or sport in an overseas country:

(iii)

they are not undertaking an activity or performance under a programme of a foundation, trust, or organisation outside New Zealand which exists for the promotion of a cultural activity and is not carried on for individual profit of the member or shareholder:

(iv)

if they are an employee, officer, or principal of a company, firm, or other person, includes the company, firm, or other person

promotional appearance fee means fees or remuneration that relate to a personal attendance for exhibiting or demonstrating goods

Schedule 4 part F clause 7 Part F activity: inserted (with effect on 1 April 2008), on 6 October 2009, by section 579(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 4 part F clause 7 schedular entertainment activities: repealed (with effect on 1 April 2008), on 6 October 2009, by section 579(7) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Part G Sales commission

1

A payment of commission or remuneration to an insurance agent or sub-agent, or to a salesperson has a standard rate of tax of 0.20 for each dollar of the payment.

Schedule 4 part G clause 1: amended, on 1 April 2017, by section 99(15) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Part H Payments to purchase natural products

1

A payment that relates to a purchase of schedular natural products has a standard rate of tax of 0.25 for each dollar of the payment, if the payment is made to the seller and it is not an exempt natural products payment.

Schedule 4 part H clause 1: amended, on 1 April 2017, by section 99(16) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

2

A payment that relates to a purchase of game has a standard rate of tax of 0.25 for each dollar of the payment, if the payment is made to the seller.

Schedule 4 part H clause 2: amended, on 1 April 2017, by section 99(17) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

3

In this part,—

exempt natural products payment means a payment that relates to the purchase of schedular natural products, if the payment is made—

(a)

to a natural products dealer:

(b)

on a purchase that occurs after a disposal by a natural products dealer:

(c)

to an auctioneer or a dealer acting as agent for the seller:

(d)

at retail, in a shop

game means all or part of a wild deer, wild pig, or wild goat, whether dead or alive

natural products dealer means a person who—

(a)

is registered under any Act or regulation as a broker, dealer, or trader in relation to schedular natural products:

(b)

holds a natural product dealer certificate, issued by the Commissioner under section 44D of the Tax Administration Act 1994:

(c)

holds an unrevoked certificate from the Commissioner showing that the person would be a licensed dealer for purposes of the Income Tax (Withholding Payments) Regulations 1979 if those regulations had not been revoked by this Act

schedular natural products means—

(a)

greenstone (nephrite):

(b)

eel:

(c)

whitebait:

(d)

sphagnum moss.

Part I Personal service rehabilitation payments

Schedule 4 part I: added, on 1 April 2008, by section 556 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

1

A personal service rehabilitation payment for a person under the Accident Compensation Act 2001 has a standard rate of tax of 0.105 for each dollar of the payment.

Schedule 4 part I clause 1: amended, on 1 April 2017, by section 99(18) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Schedule 4 part I clause 1: amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Part J Payments under labour-hire arrangements

Schedule 4 part J: inserted, on 1 April 2017, by section 99(19) (and see section 99(21)) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

1

A payment by a person (the payer) to another person (the payee) has a standard rate of tax of 0.20 for each dollar of the payment if—

(a)

1 of the payer’s main activities is the business of arranging for a person or persons to perform work or services directly for clients of the payer; and

(b)

the payment is made under an arrangement the performance of which, in whole or in part, involves the performance of work or services by the payee directly for a client of the payer, or directly for a client of another person; and

(c)

in the case of the payer and the payee being associated persons described in section YB 2 or YB 3, the payer has chosen to apply this part to the payment.

Schedule 4 part J clause 1: inserted, on 1 April 2017, by section 99(19) (and see section 99(21)) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Part W Voluntary schedular payments

Schedule 4 part W: inserted, on 1 April 2017, by section 99(20) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

1

A payment to a person is treated as a schedular payment (a voluntary schedular payment) and has a standard rate of tax of 0.20 for each dollar of the payment if—

(a)

there is no obligation to withhold an amount from the payment under this Act or under the Tax Administration Act 1994; and

(b)

the payer and the payee have agreed that the payment is a voluntary schedular payment, and have recorded their agreement in a document.

Schedule 4 part W clause 1: inserted, on 1 April 2017, by section 99(20) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).