Tax information
Should you commence a contract with absoluteIT, your relationship with absoluteIT is that of self-employed person and accordingly, you are responsible for payment of all taxes and other payments applicable under existing law including, but not limited to, GST, Withholding Tax, Income Tax and Accident Compensation Corporation levies. There will exist no employer-employee relationship.
Provisional Tax
Provisional Tax is a form of income tax payment that is based on estimates of income in the current taxation period, for self-employed individuals or organisations. This form of taxation is applicable to self-employed contractors who elect to be responsible for paying their own taxes direct to Inland Revenue.
absoluteIT normally recommends that the services of an accountant be utilised to assist each individual with this process to ensure all compliance requirements are met in accordance with tax laws, unless you choose to use our GO CONTRACTING service
GST
GST is a Government imposed Goods and Services Tax, and is charged on all services supplied by our contractors at a rate of 12.5%. A GST registered contractor is expected to provide for and pay GST as directed by the Inland Revenue. To check whether you are required to register for GST, please refer to the Inland Revenue Department's online resources here
Further Information
For further information on meeting your tax and ACC levy obligations please refer to the following websites IRD | ACC