- A personal services company (PSC) can register for GST if it contracts directly to supply a director’s or board member’s services, because that supply is separate from the individual’s own directorship/board role.
- Even if the individual could not register for GST in their personal capacity, the PSC may still register if its activity counts as a taxable activity.
- If the director/board member contracts directly but must pay fees to the PSC, GST law can treat those fees as consideration for a supply by the PSC.
- The PSC must register for GST if it exceeds the $60,000 threshold.
- This ruling replaces QB 23/07.
Source: taxtechnical.ird.govt.nz
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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