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Income Tax Act 2007

General collection rules - Employment-related taxes - Introductory provisions

RD 3: PAYE income payments

You could also call this:

“Payments subject to PAYE tax rules”

The PAYE rules apply to PAYE income payments. These payments include your salary or wages, extra pay, and schedular payments. However, there are some things that are not considered PAYE income payments. These include amounts attributed under section GB 29, certain amounts paid to shareholder-employees, and amounts paid or benefits provided by someone who receives a personal service rehabilitation payment.

If you’re not sure whether the PAYE rules apply to all or part of a PAYE income payment, the Commissioner will decide. This doesn’t apply to amounts mentioned in sections RD 3B or RD 3C.

If you want to know more about what counts as salary or wages, you can look at section RD 5. For information about extra pay, check section RD 7. And if you’re curious about schedular payments, section RD 8 has the details.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519941.

Topics:
Money and consumer rights > Taxes
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RD 2: PAYE rules and their application, or

“Rules for paying and receiving income tax through the PAYE system”

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RD 3B: Shareholders who are employees, for some companies: income other than PAYE, or

“Income rules for shareholder-employees in certain companies”

Part R General collection rules
Employment-related taxes: Introductory provisions

RD 3PAYE income payments

  1. The PAYE rules apply to a PAYE income payment which—

  2. means—
    1. a payment of salary or wages, see section RD 5; or
      1. extra pay, see section RD 7; or
        1. a schedular payment, see section RD 8:
        2. does not include—
          1. an amount attributed under section GB 29 (Attribution rule: calculation):
            1. an amount paid to a shareholder-employee in the circumstances set out in section RD 3B or RD 3C:
              1. an amount paid or benefit provided, by a person (the claimant), who receives a personal service rehabilitation payment from which an amount of tax has been withheld at a rate specified in section RD 10B.

              2. Repealed

              3. Repealed

              4. Repealed

              5. If a question arises whether the PAYE rules apply to all or part of a PAYE income payment, other than an amount referred to in section RD 3B or RD 3C, the Commissioner must determine the matter.

              Compare
              Notes
              • Section RD 3(1)(b)(ii): amended, on , by section 260(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(1)(b)(iii): replaced, on , by section 86 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
              • Section RD 3(2) heading: amended (with effect on 1 April 2008), on , by section 259(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(2) heading: repealed, on , pursuant to section 260(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(2): amended (with effect on 1 April 2008), on , by section 259(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(2): repealed, on , by section 260(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(3) heading: repealed, on , pursuant to section 260(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(3): amended (with effect on 1 April 2008), on , by section 259(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(3): repealed, on , by section 260(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(4) heading: repealed, on , pursuant to section 260(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(4): amended (with effect on 1 April 2008), on , by section 259(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(4): repealed, on , by section 260(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(5) heading: replaced, on , by section 260(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3(5): replaced, on , by section 260(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
              • Section RD 3 list of defined terms close company: repealed (with effect on 1 April 2008), on , by section 259(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).