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Income Tax Act 2007

Income - Excluded income

CX 1B: Treatment of flat-rate credits under platform economy rules

You could also call this:

“How tax works with flat-rate credits from platform economy businesses”

When you get a flat-rate credit, it is not part of your income, unless you are an underlying supplier. You are an underlying supplier if you receive a flat-rate credit and you do not need to make an adjustment under section 20(4E) of the Goods and Services Tax Act 1985. You must include the credit in your income as described in section CH 5B for the income year.

If you are not an underlying supplier, the flat-rate credit is excluded from your income. This means you do not need to pay tax on the credit. The rules for flat-rate credits are defined in section 2(1) of the Goods and Services Tax Act 1985.

You need to know what a flat-rate credit is to understand these rules. A flat-rate credit is a type of payment you might get when you work with a platform economy business. The rules for platform economy businesses are in the Goods and Services Tax Act 1985.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS961221.

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Part C Income
Excluded income

CX 1BTreatment of flat-rate credits under platform economy rules

  1. For the purposes of the flat-rate credit, as defined in section 2(1) of the Goods and Services Tax Act 1985, the amount of the credit is excluded income of the person receiving the credit, whether or not the person is a registered person.

  2. Subsection (1) does not apply to a person who, for an income year,—

  3. is an underlying supplier; and
    1. receives a flat-rate credit for which they are not required to make an adjustment under section 20(4E) of the Goods and Services Tax Act 1985; and
      1. includes the amount of the credit in their income as described in section CH 5B (Adjustments for certain flat-rate credits under platform economy rules) for the income year.

        Notes
        • Section CX 1B: inserted, on , by section 24B of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
        • Section CX 1B(1) heading: inserted (with effect on 1 April 2024), on , by section 31(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
        • Section CX 1B(2) heading: inserted (with effect on 1 April 2024), on , by section 31(2) (and see section 31(4) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
        • Section CX 1B(2): inserted (with effect on 1 April 2024), on , by section 31(2) (and see section 31(4) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
        • Section CX 1B list of defined terms income: inserted (with effect on 1 April 2024), on , by section 31(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
        • Section CX 1B list of defined terms income year: inserted (with effect on 1 April 2024), on , by section 31(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).