IR330C form — Tax rate notification for contractors
Tells the payer what withholding rate to deduct from schedular payments to a contractor.
The three things that matter
| If you don't hand one in | 45% withheld (20% for a non-resident contractor company) |
|---|---|
| Lowest rate you can elect | 10% resident, 15% non-resident — below that needs a tailored tax rate certificate |
| Who you give it to | Every payer you contract for — one form each |
Who needs to complete it
- Contractors receiving schedular payments — the activities listed in Schedule 4 of the Income Tax Act 2007, such as labour-only building work, commercial cleaning, commission sales, directors' fees, entertainers and agricultural contracting.
- Contractors hired through a labour-hire business, which is a schedular payment regardless of the activity.
- Non-resident contractors working in New Zealand, who have their own minimum rate.
Filling it in, section by section
Section 1 — Your details
Name and IRD number, plus whether you are a New Zealand tax resident. Residency drives which minimum rate you may elect.
Section 2 — Your tax rate
Find your activity in the schedule on the form and take its standard rate, or elect your own rate at or above the statutory minimum. Electing a rate closer to your real marginal rate is the point of the form — it is how contractors avoid a large terminal tax bill or an interest-free loan to IRD.
Section 3 — Declaration
Sign and date. To go BELOW the minimum elected rate you need a tailored tax rate certificate from IRD first, and you attach that certificate rather than simply writing a lower number here.
Filled in: a worked example
Sam is a self-employed graphic designer and a New Zealand tax resident, taking on a new agency client whose payments are schedular payments.
| On the form | What goes in it | Why |
|---|---|---|
| Section 1 — Your details | Full name and IRD number | One IR330C per payer. A second client means a second form, and the rate on it can be different. |
| Section 2 — Your tax rate | A tax rate, entered to one decimal point | A resident electing their own rate cannot go below the minimum shown above without a tailored tax rate certificate. Sam picks a rate he expects to cover his tax rather than accepting the standard rate for his activity type. |
| Section 2 — Activity number | The schedular payment activity number from the table on page 3 | The rate and the activity number are two separate boxes and both are required. A rate with no activity number is an incomplete form. |
| Section 3 — Declaration | Name, designation if you have one, signature and date | If sections 1 and 3 are not complete the payer must withhold at the no-notification rate. |
Then what? Sam gives the form to the payer. The payer does not send it to Inland Revenue — they keep it for seven years after the last schedular payment. His tax code on every payment will read WT.
What goes wrong
| Mistake | What it costs you |
|---|---|
| Not giving the payer a completed IR330C. | The payer must withhold at the no-notification rate, which is far above most contractors' effective rate. Non-resident contractor companies have their own, lower, no-notification rate. |
| Assuming the withheld rate is the final tax. | Schedular withholding is a payment on account, not a final tax. You still claim expenses and may still owe provisional tax — though if schedular payments are your only income IRD assesses you automatically and asks for your expenses by letter, so no IR3 is required. |
| Electing the bare minimum rate to maximise cash flow. | Under-withholding all year produces a terminal tax bill and can drag you into the provisional tax regime, with use-of-money interest if instalments are short. |
| Filing an IR330 instead of an IR330C. | The IR330 sets a PAYE tax code for employees. Schedular payments are not salary and wages — the wrong form leaves the payer without a valid rate notification. |
If something changes after you've handed it in
The IR330C is not a one-off. These are the situations that send you back to it, and what each one actually requires.
- You want a different rate with a payer you already work for
- Give that payer a new IR330C. Nothing goes to Inland Revenue.
- You take on another client
- A separate IR330C for each source of contracting income. The rate can differ between them.
- Even the minimum rate you can elect takes more tax than you will owe
- Apply for a tailored tax rate in myIR or on an IR23BS — for example when business expenses will lower the tax due on the income. Enter that rate on page 1 and show the payer your original certificate.
- You do not want tax deducted from schedular payments at all
- You may be able to apply for a certificate of exemption in myIR or on an IR332. It is not available to a resident contractor paid by a labour hire business under a labour hire arrangement — that case needs a tailored tax rate of zero instead, applied for on an IR23BS in myIR.
Work out the numbers first
The IR330C only records a decision — these do the arithmetic behind it.
Frequently asked questions
What is the IR330C form used for?
Tells the payer what withholding rate to deduct from schedular payments to a contractor.
Where do I get the IR330C form?
Download the current January 2024 edition straight from Inland Revenue: IR330C PDF on ird.govt.nz. Give it to each payer you contract for — one form per payer, not one per year. Give a fresh one whenever you want to change your rate.
Not giving the payer a completed IR330C — what happens?
The payer must withhold at the no-notification rate, which is far above most contractors' effective rate. Non-resident contractor companies have their own, lower, no-notification rate.
Assuming the withheld rate is the final tax — what happens?
Schedular withholding is a payment on account, not a final tax. You still claim expenses and may still owe provisional tax — though if schedular payments are your only income IRD assesses you automatically and asks for your expenses by letter, so no IR3 is required.
Electing the bare minimum rate to maximise cash flow — what happens?
Under-withholding all year produces a terminal tax bill and can drag you into the provisional tax regime, with use-of-money interest if instalments are short.
Filing an IR330 instead of an IR330C — what happens?
The IR330 sets a PAYE tax code for employees. Schedular payments are not salary and wages — the wrong form leaves the payer without a valid rate notification.
How do I change my IR330C after I've handed it in?
Give that payer a new IR330C. Nothing goes to Inland Revenue. Most changes work the same way — see the full list of triggers on this page.
Other IRD forms
IR330 — Tax code declaration
Tells your employer which tax code to use so the right amount of PAYE comes out of each pay.
KS2 — KiwiSaver deduction form
Tells your employer which KiwiSaver contribution rate to deduct from your pay.
IR526 — Tax credit claim form (donations)
Claims the donation tax credit for gifts of money made to approved donee organisations.
IR3R — Rental income schedule
The rental property schedule that attaches to an IR3 return, setting out income and expenses per property.
IR334 — Employer registration
Registers a business as an employer so it can file payday returns and pay PAYE.
See the IRD forms index, or browse every form on ird.govt.nz.