Certificates of exemption can only be used for schedular payments. They cannot be used for salary or wages.
Are you eligible to apply for a certificate of exemption?
If you are a New Zealand tax resident you can apply for a certificate of exemption if you:
- are in business
- have a good record of filing tax returns and paying tax
- receive schedular payments from a payer other than a labour hire business under a labour hire arrangement.
New Zealand tax residents receiving schedular payments from a labour hire business under a labour hire arrangement need to apply for a 0% special tax rate instead.
Non-resident contractors receiving schedular payments from a labour hire business under a labour hire arrangement are eligible to apply for a certificate of exemption.
Renewing a certificate of exemption
We issue certificates of exemption for up to five years. We look at your tax record when deciding how long to issue your certificate for.
You need to renew your certificate of exemption every tax year. We will send you a renewal notice in January or February so you have time to renew your certificate before the new tax year starts on 1 April.