# IR330C Schedular Payments NZ & Tailored Tax Rate Guide (2026)

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- **Jurisdiction / Region:** NZ
- **Last Verified:** Mon Nov 02
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- **Summary:** Complete 2026 IRD IR330C schedular payments NZ guide: standard WT rates (15%–20%), 45% no-notification penalty, 10% elected rate & 0% IR23BS exemption.

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# IR330C Schedular Payments NZ: How Contractors, Freelancers & Consultants Set Their WT Rate or 0% Exemption (2026–27)

**Short answer: Under Inland Revenue's IR330C schedular payments NZ rules, self-employed contractors, construction subcontractors, freelance creatives, and real estate or commission agents receiving schedular payments (tax code WT) must hand a completed Form IR330C to their payer before their first invoice is paid—or face a mandatory 45% no-notification withholding deduction. On Form IR330C, you can use your industry's standard rate (typically 15% to 25%), elect any higher rate, choose a rate down to the 10% minimum for residents, or apply in myIR for a 0% Tailored Tax Rate certificate.**

> **⚡ Instant NZ Schedular Payment & 15% GST Invoice Maker (Free Web Studio + iPhone App):** Build an IRD-compliant NZD invoice showing your `15% GST` on the gross amount and your `IR330C WT` withholding deduction in our **[Free Invoice Generator](/keel/invoice-generator/)** (`🔗 Embed / CSV Template` + `5 Free Saves in iCloud Web Workspace`), or manage NZBN quotes, invoices, Bunnings/Mitre 10 dockets, and `$1.17/km` logbooks offline on iPhone with **0% income cut** via the **[Keel AU & NZ Sole Traders App Store Edition](https://apps.apple.com/us/app/keel-invoice-maker-receipts/id6786659713?ppid=8470921a-830e-47a3-abf5-bf0b1cce24ac)** ([Overview](/keel/cpp/australia-nz-sole-traders/)).

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## What Are IR330C Schedular Payments in New Zealand and Who Do They Apply To?

According to official [Inland Revenue (IRD) Form IR330C and Schedular Payment rules](https://www.ird.govt.nz/income-tax/withholding-taxes/schedular-payments), a **schedular payment** is a contract payment for work or services (not wages or salary) from which the payer must deduct withholding tax (`WT`) before paying your invoice, unless you hold a `0%` exemption certificate.

The **ir330c schedular payments nz** regime covers all three pillars of independent workers in New Zealand:

1. **Trades & Construction Subcontractors:** Labour-only building, carpentry, electrical, plumbing, roofing, painting, roading, forestry, and commercial cleaning contractors (**`20%` standard WT rate**).
2. **Freelancers & Creative / Media Pros:** Television, film, video production, commercial photography, modelling, journalism, and performing arts freelancers (**`20%` to `25%` standard WT rate**).
3. **Consultants, Commission Agents & Labour-Hire Contractors:** Real estate salespersons, insurance/commission agents (**`20%` standard WT rate**), contractors placed through recruitment/IT labour-hire agencies (**`20%` standard WT rate**), and any independent consultant who enters a **Voluntary Schedular Payment Agreement** with a corporate client.

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## Complete Table of IR330C Tax Rates: Standard Rate vs Elected Rate (10% Min) vs 45% Penalty

Since the schedular payment reforms under **Schedule 4 of the Income Tax Act 2007**, New Zealand contractors are no longer locked into a rigid industry rate. When you fill in **Form IR330C**, you have four rate choices:

| IR330C Rate Option | Withholding Tax (`WT`) Rate Deducted | Who Qualifies & When to Use It |
| :--- | :--- | :--- |
| **1. Standard Industry Rate** | **`15%`, `20%`, or `25%`** (most trades, IT labour-hire, real estate & film/video = **`20%`**) | Default rate printed on the back of Form IR330C if you leave the elected-rate box blank |
| **2. Contractor-Elected Rate (Resident Min 10%)** | **Any whole percentage from `10%` up to `100%`** (`15%` min for non-residents / temporary entry class) | Best for contractors with high deductible ute/tool/equipment expenses whose true effective tax rate on net profit is closer to `10%–14%` |
| **3. Tailored Tax Rate / `0%` Exemption (`IR23BS`)** | **`0%` (or custom `< 10%` rate)** approved by IRD | Best for established GST-registered sole traders with good IRD compliance who prefer to manage their own tax and Provisional Tax in **Keel** |
| **4. No-Notification Penalty Rate (No IR330C Given)** | **`45%` mandatory deduction** | Triggered automatically if you fail to give your payer a signed Form IR330C containing your name and IRD number before payment |

*(Note: If you changed your elected rate on Form IR330C twice with the same payer within a 12-month period, you need the payer's consent for a third change in that same year.)*

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## How Do You Calculate 15% GST and IR330C Withholding Tax on the Same NZ Invoice?

The #1 invoicing mistake made by GST-registered Kiwi tradies, video producers, and labour-hire consultants is calculating the `WT` deduction *after* adding `15%` GST. Under IRD rules:

- **15% GST is calculated on the GST-exclusive gross fee** (`Gross × 0.15`).
- **IR330C Withholding Tax (`WT`) is ALSO calculated strictly on the GST-exclusive gross fee** (`Gross × WT%`)—never on the GST portion!

```text
================================================================================
              TAXABLE SUPPLY INFORMATION (SCHEDULAR PAYMENT INVOICE)
================================================================================
FROM:                                      BILL TO (HEAD CONTRACTOR / PAYER):
Kauri Coast Carpentry (Sole Trader)        Southern Cross Builders Ltd
IRD / GST Number: 128-XXX-XXX              NZBN: 942904XXXXXXX
NZBN: 942905XXXXXXX                        Tax Code Provided on IR330C: WT (15%)

INVOICE NUMBER:   INV-2026-089             ISSUE DATE: 2 November 2026
================================================================================
DESCRIPTION                                     QTY      RATE (NZD)   LINE TOTAL
--------------------------------------------------------------------------------
1. Labour-Only Framing & Roof Truss Fix        40.0 hrs     $75.00     $3,000.00
   - Lot 14 Millwater Site (26–30 Oct 2026)
--------------------------------------------------------------------------------
                                           SUBTOTAL (EXCL. GST):       $3,000.00
                                           PLUS 15% GST ($3,000 × 15%): +$450.00
                                           TOTAL TAXABLE SUPPLY:       $3,450.00
                                           LESS IR330C WT (15% OF EX-GST
                                           $3,000.00):                  -$450.00
                                           --------------------------------------
                                           NET CASH PAYABLE TO BANK:   $3,000.00
================================================================================
```

Notice the elegance of electing a **`15%` WT rate on Form IR330C** when you are GST-registered: the `+15% GST` (`+$450`) and the `-15% WT` (`-$450`) cancel each other out dollar-for-dollar, so the payer transfers the exact ex-GST subtotal (`$3,000`) to your bank account while forwarding `$450` of prepaid income tax directly to your IRD account!

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## When Should a Kiwi Contractor Apply for a 0% Tailored Tax Rate Certificate (Form IR23BS)?

If you have significant deductible overheads—such as commercial ute costs, workshop rent, subcontractor crew payments, or heavy camera and production equipment—having `20%` deducted from your gross turnover can starve your working capital. Applying in **myIR** for a **Tailored Tax Rate (Form IR23BS)** allows IRD to issue a certificate reducing your withholding rate down to **`0%`** (or a custom single-digit percentage) so you keep 100% of client payments in your bank account and pay tax on your true net profit instead.

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## How Does IR330C Compare With Paying Hnry's 1% + GST Fee?

Many Kiwi sole traders sign up for Hnry (`1% + GST` of gross income, capped at `$1,500 + GST/year`) simply because they want automatic tax deductions from client invoices. Yet if you work under **ir330c schedular payments nz** (or sign a **Voluntary Schedular Payment Agreement** on Form IR330C with your main B2B clients), **your client's payroll system deducts and sends your income tax to IRD for `$0` fee**, while **[Keel](/keel/nz-hnry-alternative-sole-trader-bookkeeping-guide/)** tracks your NZBN invoices, expense dockets, `$1.17/km` vehicle logbook, and `GST101A` / `IR3` return worksheets on your iPhone with **0% cut of your income**. See our **[Self-Employed Taxes in NZ Guide](/keel/nz-self-employed-taxes/)** for full IR3 and ACC earner/work levy brackets.

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## Frequently asked questions

**Can I choose a 10% withholding tax rate on Form IR330C without asking IRD for permission?**
Yes! Provided you are a New Zealand tax resident (and IRD has not issued a compulsory deduction notice for unpaid tax arrears), you can write **any whole percentage from `10%` to `100%`** in Box 8 of **Form IR330C** and hand it to your payer—no prior myIR application is required unless you want a rate **below `10%`** (such as a `0%` Tailored Tax Rate / Certificate of Exemption).

**How do I apply for a 0% Tailored Tax Rate (Certificate of Exemption) from schedular payments?**
Log in to **myIR**, select your Income Tax account, and choose **Apply for a tailored tax rate** (or Form `IR23BS`). If you have a clean filing and payment history and you invoice through an established business structure or prefer to pay via Provisional Tax, IRD can issue a `0%` Tailored Tax Rate certificate so your clients pay you 100% gross.

**Does IR330C withholding tax cover my ACC levies and GST?**
No. Withholding tax (`WT`) deducted under Form IR330C only credits toward your **Income Tax** on your year-end **IR3 return** (and reduces or eliminates your Provisional Tax liability). You are still responsible for paying your **ACC CoverPlus / self-employed invoice** and—if registered—filing and paying your **15% GST** (`GST101A`).

**What happens if too much withholding tax was deducted on my IR330C during the year?**
Because `WT` is a credit against your final **IR3** income tax calculation after subtracting all your business expenses (tools, `$1.17/km` Tier 1 vehicle logbook, home office, insurance, and phone), any excess `WT` deducted above your true tax bill on net profit is **refunded to your bank account** by Inland Revenue after you file your IR3 return after 31 March.

**Can I use Form IR330C if my profession is not listed on the standard schedule?**
Yes. Any self-employed freelancer, management consultant, designer, or contractor in New Zealand can enter a **Voluntary Schedular Payment Agreement** by ticking the voluntary agreement box on Form IR330C, provided your client agrees in writing to deduct and remit `WT` on your invoices.

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