(1) These regulations may be cited as the Income Tax (Withholding Payments) Regulations 1979.

(2) These regulations shall come into force on the 1st day of April 1980.

(3) These regulations shall apply with respect to every withholding payment made on or after the date of the commencement of these regulations, whether made in respect of any date before or after or any period commencing before or after the date of the commencement of these regulations.

(1) In these regulations, unless the context otherwise requires,—

(2) For the purposes of the definition of licensed dealer in subclause (1) of this regulation—

• (a) A certificate under paragraph (b) of the definition shall be granted by the Commissioner as of right and without payment of any fee upon written application by a person who is carrying on a business referred to in paragraph (b); and any such certificate may be revoked by the Commissioner when its holder is no longer carrying on any such business:

• (b) A certificate under paragraph (c) of the definition may be granted by the Commissioner in the Commissioner's discretion without payment of any fee upon written application; and any such certificate may be revoked by the Commissioner at any time.

(1) Subject to the provisions of these regulations, all payments of the classes specified in the Schedule to these regulations are hereby declared to be witholding payments for the purposes of the PAYE rules.

(2) Notwithstanding anything in subclause (1) of this regulation, the following payments shall not be withholding payments for the purposes of the PAYE rules, namely:

• (a) Any payment that is salary or wages or an extra pay

• (b) Any payment made in respect of or in relation to work done or services rendered by any public authority, local authority, Maori authority, or company, not being a company which is a non-resident entertainer or a non-resident contractor or a specified agricultural, horticultural, or viticultural company:

• (c) Any payment exempted by an exemption certificate under regulation 5 of these regulations which bears the signature of the person to whom it is addressed and is produced to the person making the payment at the time when he makes the payment.

• (d) any payment made in respect of, or in relation to, work done or services rendered by a non-resident contractor if the non-resident contractor is eligible for total relief from tax under a double tax agreement and is present in New Zealand for 92 days or less in any period of 12 months:

• (e) any contract payment made in respect of, or in relation to, the contract activities of a non-resident contractor if the total amount of contract payments made for the contract activities to the non-resident contractor, the non-resident contractor's agent, and any other person acting on the non-resident contractor's behalf is $15,000 or less in any period of 12 months.

(1) Subject to subclause (2), the Commissioner may in the Commissioner's discretion issue to any person an exemption certificate addressed to that person specifying any payments to be made to that person during the period specified in the certificate in respect of which no tax deductions shall be made, being payments which, but for the certificate, would be withholding payments.

(2) Subclause (2) of this regulation shall not apply with respect to any payment to a non-resident entertainer.

(3) On application made in writing to the Commissioner by a non-resident contractor, the Commissioner may issue, subject to such terms and conditions as the Commissioner considers appropriate and as are specified by the Commissioner, an exemption certificate addressed to the non-resident contractor specifying that any contract payment to be made to the non-resident contractor (or to the non-resident contractor's agent or any other person acting on the non-resident contractor's behalf), for any contract activity specified in the certificate, is a contract payment in respect of which no tax deductions shall be made, in any case where—

• (a) The Commissioner is satisfied that any amount derived, or which may be derived, by the non-resident contractor from that contract activity is not or will not be income, whether by reason of any double tax agreement or for any other reason; or

• (b) The non-resident contractor gives to the Commissioner a bond or other form of security, satisfactory to the Commissioner, securing the payment on terms acceptable to the Commissioner of any income tax payable or which may become payable by the non-resident contractor on any amount derived or which may be derived by the non-resident contractor from that contract activity; or

• (c) The Commissioner is satisfied that—

  • (i) The non-resident contractor has, in the period of 24 months immediately preceding the date on which the application is made, paid every amount of income tax payable by the non-resident contractor, in that period, under the Act and has in all other respects complied with the non-resident contractor's obligations arising in that period under the Act and the Tax Administration Act 1994; and

  • (ii) The non-resident contractor will, on and after that date, pay every amount of income tax payable or which may become payable by the non-resident contractor under the Act and will, in all other respects, comply with the non-resident contractor's obligations arising under the Act and the Tax Administration Act 1994.

(4) The Commissioner may at any time cancel an exemption certificate.

(5) Not later than 7 days after the Commissioner has given notice of the cancellation of an exemption certificate to the person to whom it is addressed, that person shall return the certificate to the Commissioner at the office of the Inland Revenue Department from which the certificate was issued.

(6) No person shall alter any exemption certificate issued by the Commissioner under this regulation, or falsely pretend to be the person to whom any such certificate is addressed, or have in their possession, without lawful justification or excuse, a colourable imitation of any such certificate, or cause or attempt to cause any person to refrain from making a tax deduction by the production of any such certificate which is not for the time being in force.

(1) Subject to the provisions of these regulations, every tax deduction from a withholding payment shall be the amount calculated according to the amount of the payment at the appropriate rate specified in the Schedule to these regulations or, as the case may be, the amount or at the rate specified in a special tax rate certificate issued pursuant to regulation 6A of these regulations.

(2) Subject to the provisions of these regulations, every tax deduction from a withholding payment shall be calculated according to the gross amount of the payment, whether or not the payment consists wholly or partly of income, and whether the amount of the tax deduction relates exclusively to the income tax liability of the person receiving the payment or relates partly to that income tax liability and partly to income tax liability of an employee or subcontractor of the person.

Provided that where the gross amount of the payment includes any amount of goods and services tax and the payer holds a tax invoice issued by the payee pursuant to section 24 of the Goods and Services Tax Act 1985, that amount of goods and services tax shall not be included as part of the gross amount of that payment.

(3) Where the Commissioner makes a determination under regulation 7 of these regulations that part of any withholding payment shall be regarded as expenditure incurred in the production of the payment, the tax deduction shall be calculated according to so much of the payment as remains after the subtraction therefrom of that part.

(1) The appropriate rate for payments for work done or services rendered within the class specified in clause 1A of Part B of the Schedule is the rate specified in that clause, even if the payment also falls within a class specified in any other clause of the Schedule.

(2) This regulation does not apply if a special tax rate certificate has been issued under regulation 6A.

(1) The Commissioner may on the application of any person, not being a non-resident entertainer, issue to that person a special tax rate certificate specifying that the tax deductions to be made from any withholding payment made to that person shall be of such amount or at such rate as is specified in that certificate or shall be made from a specified proportionate part of each payment as if that part were the whole of the payment.

(2) The Commissioner may at any time cancel any special tax rate certificate.

(3) Not later than 7 days after the Commissioner has given notice of the cancellation of a special tax rate certificate to the person to whom it is addressed, that person shall return the certificate to the Commissioner at the office of the Inland Revenue Department from which the certificate was issued.

(4) No person shall alter any special tax rate certificate issued by the Commissioner under this regulation, or falsely pretend to be the person to whom any such certificate is addressed, or have in their possession, without lawful justification or excuse, a colourable imitation of any such certificate, or cause or attempt to cause any person to refrain from making a tax deduction by the production of any such certificate which is not for the time being in force.

For the purposes of these regulations, the Commissioner may from time to time determine, on such basis as the Commissioner thinks fit, what amount or proportion of any specified withholding payment, or withholding payments of any specified class, shall be regarded as expenditure incurred in the production of the payment or payments, and for the purposes of these regulations every such determination shall be final and conclusive, subject to any further determination by the Commissioner. Any determination made by the Commissioner under this regulation may be from time to time varied or at any time revoked by the Commissioner.

Every tax deduction required by the Act to be made from any withholding payment shall be made, notwithstanding that the payment may be protected against assignment or charge.

Where the income derived from New Zealand by a non-resident entertainer consists solely of specified payments from which tax deductions have been made in accordance with these regulations, the income tax liability of the non-resident entertainer is deemed to equal the total amount of the tax deductions made under these regulations.

Provided that if in any case the non-resident entertainer furnishes a return of income under the Tax Administration Act 1994 in respect of that income, the income tax liability of the non-resident entertainer shall be determined in accordance with the Act.

In any case where a non-resident entertainer is in receipt of any specified payment which is subject to a tax deduction in accordance with these regulations and no tax deduction was made at the time of payment, the non-resident entertainer shall pay to the Commissioner an amount equal to the tax deduction that should have been made, not later than the 20th day of the month following the month in which the deduction should have been made, or the date of departure from New Zealand, whichever is the earlier, and any amount so paid shall be deemed to be a tax deduction from that specified payment.

If a tax deduction has been made, or will be required to be made, from a withholding payment made under a contract to the contractor undertaking to do work or render services in relation to that contract, and the contractor is liable to make any payment to any employee or subcontractor of the contractor for work done or services rendered in relation to the contract, the contractor must comply with the provisions of the PAYE rules and of these regulations in respect of any tax deduction required to be made by the contractor from any payment made by the contractor to any employee or subcontractor of the contractor for work done or services rendered in relation to the contract.

(1) If an employer is required to deliver to the Commissioner an employer monthly schedule for a particular period and the employer makes, during that period, a relevant payment in relation to which a tax deduction is not required to be made by virtue of a certificate issued under regulation 5 or regulation 6A, the employer must include in the employer monthly schedule the information set out in subclause (3) in relation to the relevant payment.

(2) If an employer is not required to deliver to the Commissioner an employer monthly schedule for a particular month and the employer makes a relevant payment during that month, the employer must provide to the Commissioner the information set out in subclause (3) in relation to the relevant payment not later than the 20th of the month following the month in which the employer made the relevant payment.

(3) For the purposes of subclauses (1) and (2), the information that must be provided is—

• (a) the name and tax file number of the employer; and

• (b) the name of the person that received the payment; and

• (c) if supplied to the employer, the tax file number of the person that received the payment; and

• (d) the gross amount of the payment.

• (e) [Revoked]

• (f) [Revoked]

(4) For the purposes of this regulation, relevant payment means a payment for work done or services rendered within the class specified in clause 4A of Part A of the Schedule.

The Income Tax (Withholding Payments) Regulations 1975 and the Income Tax (Withholding Payments) Regulations 1975, Amendment No 1, are hereby revoked