{"id":219726,"date":"2023-01-11T08:10:59","date_gmt":"2023-01-10T19:10:59","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=219726"},"modified":"2026-03-11T17:21:14","modified_gmt":"2026-03-11T04:21:14","slug":"what-is-withholding-tax","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/corporations\/what-is-withholding-tax\/","title":{"rendered":"What is Withholding Tax in New Zealand?"},"content":{"rendered":"\n

There are certain situations where New Zealand law requires withholding tax. This means that instead of a person who receives income paying their tax liability to Inland Revenue (IR) in a lump sum at the end of the tax year, their payer withholds a portion of the payment and pays it to IR on behalf of the person receiving the income. This happens most commonly in the context of employers paying their employees\u2019 salary or wages and results in the employee receiving their income minus tax. However, it also occurs with other types of payments. This article helps business owners understand the different scenarios in which they may need to withhold tax from payments or have tax withheld from payments to them.<\/span><\/p>\n\n\n

\n \"Front\n
\n
Employee Share Schemes for New Zealand<\/div>\n
\n

Understand how an Employee Share Scheme will help your NZ startup attract and retain great talent.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

Pay as You Earn (PAYE)<\/span><\/h2>\n\n\n\n

Every time you pay your staff their salary or wages, you may need to withhold a certain percentage of their income for their: <\/span><\/p>\n\n\n\n