How to pay less tax in New Zealand
July 2023New Zealand tax bill is calculated on net profit.
You can reduce your tax bill by claiming as many valid business expenses as you can.
You'll need to keep good records, eg receipts and log books, and hold them for 7 years.
New Zealand GST of Bodies Corporate
June 2013The New Zealand inland revenue released on May 8 an issues paper regarding the GST treatment of bodies corporate carrying taxable activities and making supplies to a number of services.
People can submit their views regarding the issue paper by June 18, 2013.
More info: www.ird.govt.nz.
New Zealand New 15% GST
November 2010The New Zealand Goods and Services tax, GST, increased from 12.5% to 15% effective October 1, 2010.
New Zealand Budget Updates
May 2010The finance minister presented on 20/5/2010 the second budget which includes significant tax changes.
According to the budget the GST, goods and services tax, will increase from the current 12.5% to 15%, starting October 1, 2010.
From that date personal income tax rates will be reduced to 10.5%-33%, compared to the current 12.5%-38% tax rates.
The corporate income tax rate will also be reduced in the tax year 2011-2012 from 30% to 28%.
More info: www.treasury.govt.nz/budget/2010
U.S. and New Zealand Tax Treaty
December 2008The U.S and New Zealand signed on December 1, 2008 a new protocol updating the tax current tax treaty between the two countries.
The protocol relates, inter-alia, to excluding U.S. social security and unemployment taxes from the "taxes covered" article 2 of the treaty.
The new tax withholding rate for royalties between the two countries will be reduced from 10% to 5%.
The protocol will enter into force after ratification by both countries.
For more details please see www.ustreas.gov
Nea Zealand Budget 2007/8
May 2007
According to New Zealand's budget for the year 2007/8 there are some significant changes.
The corporate income tax rate would be reduced from 33% to 30%.
A new 15% tax credit will be given to R&D projects, starting 2008/9.
Regarding the saving scheme KiwiSaver, a compulsory contribution will be imposed on employers, from 1% in 2008 to 4% in 2011.
At present the 2007 corporate tax rate in New Zealand is 33%.Individual's income tax rates are 19.5%-39%.
Capital gains are generally tax exempt.
The standard GST, goods and services tax, is 12.5%. The annual turnover for GST registration is NZD 40,000.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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