GST Treatment of Directors’ and Board Members’ Fees: Summary of Public Rulings 26/01-26/03

• The rulings (effective 7 Aug 2026) clarify GST treatment for directors’ and board members’ fees, replacing the 2023 versions.
• For direct appointments, GST applies only if the role is accepted as part of an existing taxable activity; otherwise, it is excluded and no GST is charged.
• If the individual is engaged through a third party, employer, or partnership, that entity is treated as making the supply and accounts for GST; the company/organization may claim input tax if registered.
• If fees from a direct appointment are remitted to an employer or partnership, the GST liability shifts to that employer or partnership via a deemed supply.
• Governor-General/Governor-General in Council appointees are a special case: they are always excluded from taxable activity in that role, except where an employer or partnership is deemed to supply the services.

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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