Directors' fees
The Commissioner has published several items on Directors’ fees. This overview sets out these items, organised by tax type and subject.
Goods and Services tax
- Timing – derivation of income from professional services
- Excessive remuneration
- Schedular payment rules
The Commissioner issues different types of guidance items to cater for different customer needs. The different types of items are explained here.
Goods and services tax
Directors' fees and Board members' fees
| Title | Summary | Date issued |
|---|---|---|
|
GST – Directors’ fees and board members' fees BR Pub 23/01 - 23/03 and Fact sheet |
These Rulings (and accompanying Fact sheet) explain whether directors' fees and board members' fees are subject to GST. Applies from 1 April 2023. |
22 Feb 2023 |
|
Professional directors and board members incorrectly registered for GST OP 23/02 |
This OP gives guidance on how BR Pub 23/01 -23/03 will be applied. Specifically, it explains the approach the Commissioner will take if a professional director or board member incorrectly registers for GST. | 1 Sept 2023 |
|
GST - Directors and board members providing services through a personal services company QB 23/07 |
This QWBA considers the GST treatment of a director or board member who provides their services through a personal services company. | 21 Jul 2023 |
Income tax
Timing - derivation of income from professional services
| Title | Summary | Date issued |
|---|---|---|
|
When is income from professional services derived? IS 16/06 |
This IS provides guidance on when income from professional services should be returned for tax purposes. It also addresses the consequences of changing between the cash basis and the accrual basis. | 20 Dec 2016 |
Excessive remuneration
| Title | Summary | Date issued |
|---|---|---|
|
Meaning of 'excessive remuneration' and 'excessive profits or losses' QB 14/09 |
This QWBA considers when the payment of remuneration or allocation of profits or losses are considered to be excessive for the purposes of ss GB 23 to GB 25B. It considers the meaning of excessive remuneration and excessive profits or losses when paid or allocated to relatives, partners, shareholders or directors. | 21 Aug 2014 |
Schedular payment rules
| Title | Summary | Date issued |
|---|---|---|
|
Schedular payment rules and directors’ fees IS 17/06 |
This IS discusses how the schedular payment rules apply to payments of directors’ fees. In particular, it discusses when tax must be withheld from directors’ fee payments and how much tax must be withheld if withholding is required. | 18 Jul 2017 |
|
Schedular payment rules and non-resident directors' fees IS 19/01 |
This IS considers when tax must be withheld from directors’ fees paid to non-residents, and discusses when directors’ fees paid to non-residents are considered to have a New Zealand source. It also considers how much tax must be withheld, if withholding is required. | 28 Feb 2019 |
| Commissioner's operational position on how schedular payment rules apply to non-resident directors' fees | This OP reviews how schedular payment rules apply to non-resident directors' fees on income tax. | 28 Feb 2019 |