If Withholding Tax is taken on distributor commissions, bonuses & overides this also has implications for Fringe Benefit liability on prizes and other incentives and so great care must be taken to ensure that your contractual arrangements are correct.
IRD will generally look at the taking of Withholding tax as an indicator of being a dependent contractor/employee and therefore any provision of achievement/status car's or other prizes or incentives may be liable to Fringe Benefit Tax by that definition.

We recomment that you consult with a Tax Lawyer on this before you finalize your New Zealand Distributor Agreements.
Distributor Agreements made to meet Australian or other countries tax requirements should be reviewed as both tax laws and commercial laws do differ between countries and with interpretations.

As a general rule we do not advise Direct Selling companies to undertake withholding tax unless your salespeople are not independent contractors which is the normal situation for most Direct Sellers.