As a self-employed contractor you are responsible for paying your own income tax, GST and ACC levy and for making sure that all your returns are filed with the IRD on time.
Due to some recent law changes, as of April 2017, all labour-hire organisations such as GTS are required to take a percentage of your earnings as withholding tax and to send it directly to the IRD – this is covered under the term Schedular Payments. The amount of tax deducted by GTS is determined by the rate you specify on the IR330C form. If you complete the form but don’t stipulate a percentage then we are required to withhold 20%. If you don’t complete the form then we are required to withhold 45% which is the no-notification rate. If you feel you have reasonable cause, you can apply to the IRD for an exemption from Schedular Tax. You need to fill in form IR23BS.
You are required to register for GST if you are a self-employed contractor and earn over $60,000 p.a. GST is paid on top of the specified hourly/daily rate but can only be paid if you are GST registered and provide us with your GST number.