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Company Tax (New Zealand)

New Zealand companies pay a flat 28% corporate income tax rate on net taxable income. Maori authorities pay 17.5%. The imputation system prevents double taxation by attaching tax credits to dividends paid to shareholders.

GST (Goods and Services Tax) New Zealand

New Zealand GST is a 15% consumption tax on most goods, services and other supplies. Businesses with taxable turnover exceeding NZD 60,000 in any 12-month period must register. Two-monthly returns are due by the 28th of the following month.

Provisional Tax (New Zealand)

Provisional tax is income tax paid in instalments during the year rather than all at once after filing. The standard method sets each instalment at one-third of 105% of the prior year's residual income tax. Three instalments fall due on 28 August, 15 January and 7 May.

Imputation Credits (New Zealand)

Imputation credits represent the company tax already paid on profits before they are distributed as dividends. Shareholders receive the credit and offset it against their personal tax, preventing the same income from being taxed at both company and personal level.

KiwiSaver

KiwiSaver is New Zealand's voluntary workplace retirement savings scheme. Employers must contribute at least 3% of each employee's gross wages (rising to 3.5% from 1 April 2026 and 4% from 1 April 2028). Employees also contribute a minimum of 3%, with employer contributions subject to ESCT.

PAYE and Payday Filing (New Zealand)

PAYE (Pay As You Earn) is the system under which New Zealand employers deduct income tax and ACC earners' levy from employees' wages and remit to IRD. Since April 2019, employers must file employment information within 2 working days of each payday (payday filing).

Home office expenses are partially deductible based on floor area and time used exclusively for business. IRD uses the floor-area method: business proportion = (office sqm / total home sqm) x (business days / total days).

Wages, salaries, bonuses, and employer KiwiSaver contributions paid to employees are fully deductible. The deduction is available in the year the wages are incurred, not necessarily when paid.

Accounting, legal, consulting, and specialist fees are fully deductible when incurred for revenue (income-earning) purposes. Fees for capital transactions such as acquisitions or company restructuring must be capitalised, not expensed.

Motor vehicle costs are deductible for the business-use portion only. Sole traders can use the IRD mileage rate (NZD 1.04/km for the first 14,000 km in 2025/26) or actual costs apportioned by a 3-month logbook. Company vehicles used privately trigger FBT.

Most business meals and entertainment are 50% deductible under the Income Tax Act 2007. Exceptions allow 100% deduction for meals consumed on business premises by staff working late, working lunches for employees on the employer's premises, and food and drink at overseas conferences attended solely by employees.

Assets costing NZD 1,000 (GST-exclusive) or less are immediately expensed in the year of purchase. Assets over NZD 1,000 are capitalised and depreciated at IRD-prescribed rates using either the diminishing value or straight-line method.