New withholding tax rate for independent contractors in film industry
The withholding tax deduction rate for independent contractors involved in the production of films, television and videos has been set at 20 cents in the dollar, in line with the rate for entertainers, Revenue Minister Michael Cullen announced today.
"The film industry supports the standardisation, which will simplify administration. Currently it has to apply a withholding tax rate of 20 per cent to entertainers and one of 25 per cent to at least some independent contractors," Dr Cullen said.
"Withholding tax deductions are not a final tax. Resident contractors must file income tax returns each year. Then, if not enough tax has been deducted, the contractors make up the difference. If too much has been deducted, they receive a refund."
The change, which was approved by Order in Council today, comes into effect on 8 September 2003.
Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail [email protected]