A Personal Service Provider refers to a company which offers particular services and in reality it is the person providing the services who represents the company. Such as an accountant who sets up a company to offer his/her services and is the only director/employee. This defined in the tax act. An independent contractor is not defined, but refers to someone who offers services to various parties in their personal capacity. Often an independent contractor will spend most of the year at one client under their supervision and then in effect becomes an employee. IF that is the case then normal PAYE is withheld. IF the contractor performs work for many companies at various times, often more than one at a time then then the company must withhold tax, often 25%, before making payment.
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