When you earn money, you have to pay a part of it to the government as tax. Tax is managed by the Inland Revenue Department (IRD). The government uses taxes to pay for things like roads and education. Usually, your employer takes tax out of your pay before you even get it in your hands – this is called Pay As You Earn (PAYE) tax. In some situations, for example, if you’re a contractor rather than an employee, you will have to pay tax to IRD yourself.