Tradie loyalty rewards are taxable: IRD

A tax expert says she's even heard of tradies being given jet skis as a reward. (Image: Supplied)

Tue, 17 Dec 2024

Tradies receiving loyalty rewards like barbecues and fishing tackle from building products merchants must pay tax on them, the Inland Revenue Department has told the sector.Submissions close on Wednesday on an Inland Revenue Department (IRD) discussion document about the tax treatment of gift cards and trade rebates.Trade rebates in the form of products are income and therefore tax is payable on their realisable (secondhand) value, IRD said.ConfusionMany building products merchants offered tradespeople incentive schemes where once they earned a...

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