Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

General collection rules - Employment-related taxes - Calculating amounts of tax

RD 9: Maximum amount

You could also call this:

“Highest tax rate applies when calculating PAYE income payments”

When you calculate tax for a PAYE income payment, you need to use the highest rate in schedule 2. This schedule shows the basic tax rates for PAYE income payments. You should use the rate that applies at the time of the payment and for the person getting the payment. This is the rule unless the Income Tax Act 2007 says something different.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519959.

Topics:
Money and consumer rights > Taxes
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RD 8B: Treatment of PAYE-related overpayments, or

“How overpaid wages are handled for tax purposes”

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RD 10: Amounts of tax for PAYE income payments, or

“How much tax is taken from your pay”

Part R General collection rules
Employment-related taxes: Calculating amounts of tax

RD 9Maximum amount

  1. When a person calculates an amount of tax for a PAYE income payment, they must use the maximum rate under schedule 2 (Basic tax rates for PAYE income payments) at the time for the payment and the person receiving the payment, unless this Act states otherwise.

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