Withholding Tax Invoice Template NZ
Create invoice highlighting the tax amount to withhold as per IRD
Here is a withholding tax invoice template NZ contractors and freelancers use for issuing invoices to business clients that withhold tax before making the payment.
Please note, as you are required to report your income to IRD you cannot deducted the withholding amount from your invoice as that would result in wrong invoicing and under reporting of your income.
To make sure you issue an IRD compliant invoice and meet your client requirement of mention of tax amount to be withheld on the invoice here is what you can do. Include one line in the notes section or terms and conditions section of your invoice stating the tax amount to be withheld on the invoice.
We have created a simple withholding tax invoice template NZ contractors use for creating invoices that clearly highlight the tax amount to be withheld without reducing the invoice amount.
You might have signed the IR330C form before commencing work for your client and in that you might have selected the tax to be withheld. The minimum tax that your employer will withhold is 10%.
When you use withholding tax invoice template please make sure you do not add a negative line item showing the tax amount that your employer/client can withhold. This is completely against the IRD suggested invoicing rules. By issuing an invoice that deducts the withholding tax amount you are understating your income.
The simplest thing to do would be use our withholding tax invoice template NZ contractors like you are already using and use the sample data as a guide to create your own invoice showing the tax amount that needs to be withheld.
Please note, as you are required to report your income to IRD you cannot deducted the withholding amount from your invoice as that would result in wrong invoicing and under reporting of your income.
To make sure you issue an IRD compliant invoice and meet your client requirement of mention of tax amount to be withheld on the invoice here is what you can do. Include one line in the notes section or terms and conditions section of your invoice stating the tax amount to be withheld on the invoice.
We have created a simple withholding tax invoice template NZ contractors use for creating invoices that clearly highlight the tax amount to be withheld without reducing the invoice amount.
You might have signed the IR330C form before commencing work for your client and in that you might have selected the tax to be withheld. The minimum tax that your employer will withhold is 10%.
When you use withholding tax invoice template please make sure you do not add a negative line item showing the tax amount that your employer/client can withhold. This is completely against the IRD suggested invoicing rules. By issuing an invoice that deducts the withholding tax amount you are understating your income.
The simplest thing to do would be use our withholding tax invoice template NZ contractors like you are already using and use the sample data as a guide to create your own invoice showing the tax amount that needs to be withheld.