GST: Directors and board members providing their services through a personal services company

In February 2023 Inland Revenue issued public rulings BR Pub 23/01-03 and operational position OP 23/01 relating to the GST treatment of directors and board members. One of the findings from that analysis was that people who were “professional directors” (meaning a person whose only activity is to hold directorships – or board memberships) were not able to register for GST. This assumed these persons were operating in a natural person capacity in those roles. Subsequent to publication advisors and industry groups asked Inland Revenue about the position of directors and board members (with a focus on professional directors and board members) who provide their services through a personal services company (often a one-person company). This situation was not specifically addressed in the original rulings and operational position.This QWBA addresses the GST treatment of directors and board members operating through a personal services company and concludes that generally such personal services companies are able to be registered for GST.

Source: taxtechnical.ird.govt.nz

---

---