Set up your tax profile
Tell PayWren how you're structured so it can calculate GST and income tax estimates correctly.
Go to Tax Profile
Click Tax Profile in the sidebar. You'll see a completeness indicator at the top. The more fields you fill in, the more accurate PayWren's estimates are.
Entity type
Select how your business is structured:
Sole trader: you and the business are the same legal entity. Income is taxed as personal income.
Company: a separate legal entity (Ltd). Company tax rate is 28%.
Partnership: income split between partners, taxed individually.
Trust: income taxed at the trust or beneficiary level.
GST basis
Set how you account for GST. This must match what IRD has you set up as:
Invoice (accruals): GST is owed when you issue the invoice, regardless of payment. Most businesses use this.
Payments (cash): GST is only owed when you receive payment. Allowed if turnover is under $2 million.
Withholding tax (schedular payments)
If your clients deduct withholding tax (WT) from your payments before paying you, enter your WT rate here. Common rates:
20%: standard contractor rate 15%: reduced rate (requires an IR23BS application to IRD)
Once set, invoices to WT-applicable clients will show the withholding amount so both you and your client know what to expect.
Home office and vehicle methods
If you work from home or use your personal vehicle for business, select your claiming method. This helps PayWren flag relevant deductions and display the right guidance. The actual calculations for these deductions happen in your IR3. PayWren uses these settings for context in tax estimates only.