Section RD 8 — Income Tax Act 2007: Schedular payments

RD 8 Schedular payments Meaning (1) A schedular payment — (a) means— (i) a payment of a class set out in schedule 4 (Rates of tax for schedular payments); and (ii) in relation to a sale, the net amount paid after subtracting from the purchase price all commission, insurance, freight, classing charges and other expenses incurred by the seller in connection with the sale; and (b) does not include— (i) salary or wages; or (ii) an extra pay; or (iii) a payment for services provided by a public authority, a local authority, a Maori authority, or a company, other than a non-resident contractor, a non-resident entertainer, or an agricultural, horticultural, or viticultural company; or (iv) a payment covered by an exemption certificate provided under section 24M of the Tax Administration Act 1994; or (v) a payment for services provided by a non-resident contractor who has full relief from tax under a double tax agreement, and is present in New Zealand for 92 or fewer days in a 12-month period; or (vi) a contract payment for a contract activity or service of a non-resident contractor when the total amount paid for those activities to the contractor or another person on their behalf is $15,000 or less in a 12-month period. Protected payments (2) The fact that a schedular payment may be protected against assignment or charge does not override a person’s obligation to withhold the amount of tax for the payment. Determination of expenditure incurred (3) The Commissioner may determine from time to time the amount or proportion of expenditure that a person incurs in deriving a particular schedular payment or class of schedular payments. Defined in this Act: agricultural , horticultural , or viticultural company , amount , amount of tax , Commissioner , company , contract activity or service , contract payment , double tax agreement , exemption certificate , extra pay , local authority , Maori authority , New Zealand , non-resident contractor , non-resident entertainer , pay , public authority , salary or wages , schedular payment , Compare: 2004 No 35 s NC 21(f)–(h) , Income Tax (Withholding Payments) Regulations 1979, regulations 2, 4, 6–8 Section RD 8(1)(b)(v): amended (with effect on 1 April 2008), on 6 October 2009, by section 506 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).