Withholding tax

[netfree]

Withholding tax is an amount withheld by the party making a payment to another (payee) and paid to the taxation authorities. The amount the payer deducts may vary, depending on the nature of the product or service being paid for. The payee is assessed on the gross amount, and the tax to be withheld (the withholding tax) is computed in that assessment. The purpose of withholding tax is to facilitate or accelerate collection, by collecting tax from payers rather than a much greater number of payees, and by collecting tax from payers within the jurisdiction rather than payees who may be outside the jurisdiction. It may also be used to counteract tax evasion and tax avoidance.

[Katysmith]

Hello....

Tax on schedular payments

Employers must deduct tax on schedular payments (formerly withholding payments) from payments made to self-employed contractors, and to companies operating in the horticultural and viticultural industries unless the contractor holds a current certificate of exemption from tax on schedular payments.
Taxing activities called schedular payments (formerly withholding payments)

There is a range of activities that are liable for tax on schedular payments. The tax rate differs according to the activity.
Tax on Schedular payments (formerly withholding payments)

Self-employed contractors, and companies operating in the horticultural and viticultural industries are usually liable to pay tax on schedular payments (formerly withholding payments). Employers must deduct tax at a flat rate from payments made to contractors. Contractors are responsible for their own ACC earner's levy and student loan repayments.
Certificates of exemption from withholding tax (IR331)

Employers do not need to deduct withholding tax from payments made to contractors who hold a current certificate of exemption from withholding tax. Certificates must be renewed by the contractor each year.