RD 10 Amounts of tax for PAYE income payments
  • PAYE income payments other than schedular payments

    (1) The amount of tax for a PAYE income payment that a person must withhold and pay to the Commissioner under section RA 5 (Tax obligations for employment-related taxes) is the relevant amount under schedule 2 (Basic tax rates for PAYE income payments). Subsections (2) and (3) and sections RD 12 to RD 20 override this subsection.

    Choosing rate for extra pay

    (2) An employee who notifies their employer of their tax code may choose to have the amount of tax for an extra pay fixed as follows:

    • (a) for an employee whose taxable income for the income year is expected to be not more than $48,000, the rate set out in schedule 2, part B, table 1, row 2; or

    • (b) for an employee whose taxable income for the income year is expected to be not more than $70,000, the rate set out in schedule 2, part B, table 1, row 3; or

    • (c) for other employees, the rate set out in schedule 2, part B, table 1, row 4.

    Relationship with section RD 17

    (2B) Despite subsection (2), a person must not choose a rate set out in schedule 2, part B, table 1 that is lower than the rate that would apply to the amount of extra pay under section RD 17.

    Schedular payments

    (3) The amount of tax for a schedular payment is determined—

    • (a) at the relevant rate set out in schedule 4 (Rates of tax for schedular payments); and

    • (b) on the basis of the gross amount of the payment, other than GST, whether—

      • (i) some or all of the payment is income; and

      • (ii) the full income tax liability lies with the person receiving the payment, or lies partly with an employee or subcontractor of the person.

    Tax tables

    (4) The Commissioner may provide tables for the calculation of an amount of tax for a PAYE income payment that may incorporate other relevant information.

    Defined in this Act: amount, amount of tax, Commissioner, employee, employer, extra pay, gross, income, income tax liability, income year, notify, pay, PAYE income payment, schedular payment, tax code, taxable income

    Compare: 2004 No 35 ss NC 6, NC 8(1A), Income Tax (Withholding Payments) Regulations 1979, regulation 3

    Section RD 10(2)(a): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

    Section RD 10(2)(b): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

    Section RD 10(2)(c): added, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

    Section RD 10(2B) heading: inserted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

    Section RD 10(2B): inserted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

    Section RD 10(3)(b): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 27 February 2014, by section 124(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).