NZ Entertainers: Withholding Tax 💰
Legal requirements in New Zealand
As per legal requirements stated by the Inland Revenue Department, all payments for entertainment-like services must have a minimum of 20% tax withheld, unless an entertainer “Certification of exemption” is present (IR331). Due to these legal requirements, the venue that books you will now withhold a percentage of your earnings to lodge on your behalf unless you indicate an exemption in your Settings.
Within your Surreal Entertainer settings page, you must stipulate your unique IRD number, your tax withheld percentage and/or your tax withholding exemption (IR331). If this was not updated by the 31st of December 2023 the percentage withheld automatically will increase from 20% to 45%.
Important: If your band has multiple members who each need individual payments, assign the tax number (IRD number) of one member who will handle withholding tax (WHT) outside the Surreal platform. We suggest getting a tax exemption for that member's IRD number, which sets the withholding tax rate to 0%. This makes managing WHT simpler for everyone.
Important: Please note that Surreal will not retain the withheld amount. The venue is responsible for withholding and lodging the relevant percentage of your earnings as per IRD requirements.
Setting up an IRD number