Posted 24/03/2011 Updated 24/03/2011 Tags: Business Employing FBT Income Tax PAYE Provisional Tax Salary & Wages Tax Compliance Terminology  

Here is a brief description of the types of tax that you are likely to come across in business: GST - Goods and Services Tax - this is chargeable by businesses whose annual sales turnover is over $60,000 per year. It... more

Posted 11/03/2011 Updated 11/03/2011 Tags: Business Income Tax Provisional Tax Tax Refunds Tax Returns  

A common myth people often share is that "you don't have to pay income tax for the first year in business". The fact is any profit earned will require income tax to be paid to Inland Revenue, it's more a case of when... more

Posted 3/03/2011 Updated 3/03/2011 Tags: Accounting Business Drawings Employing Income Tax PAYE Salary & Wages Tax Compliance  

There are a couple of ways to pay owners of a business and to account for the income tax on these. The most common way is the owner taking drawings - drawings are withdrawals from the business for personal use. The... more

Posted 3/03/2011 Updated 27/07/2011 Tags: Income Tax LAQC LTC Rental Property Structures  

From the 1 April 2011 LAQC's (Loss Attributing Qualifying Companies) will cease to exist as we know them today. Inland Revenue are giving these companies the option of changing into another "style" of company or even... more

Posted 20/09/2010 Updated 10/03/2011 Tags: Business Claimable Expenses Depreciation Income Tax Tax Compliance Tax Returns  

People often ask us if it's a good idea to spend money to save tax. The idea is by creating additional expense the business can claim the cost as an expense in the business income tax return. This does work but it... more

Posted 13/09/2010 Updated 20/09/2010 Tags: FBT GST Income Tax Inland Revenue PAYE Rental Property Weblinks  

Here's a list of helpful links to articles and resources for the upcoming 1 October 2010 tax changes. This was originally a news item and have copied it to the InfoBase for easier access. In General Kiwitax - 1... more

Posted 9/11/2009 Updated 11/03/2010 Tags: Claimable Expenses Employing Income Tax PAYE Salary & Wages Vehicles  

If you are paying your employees a motor vehicle allowance as a part of their salary package this is taxed as a part of their wages. A better way would be for the employee to submit their actual expenses for... more

Posted 30/04/2009 Updated 18/09/2009 Tags: Income Tax Inland Revenue Salary & Wages Tax Refunds Tax Returns  

This guide is for salary and wage earners who do not own a business or rental property. What’s it about? Learn how to find out if the right amount of tax has been deducted from your salary & wages for the year and... more

Posted 18/12/2008 Updated 3/03/2011 Tags: Contractors Income Tax Record Keeping Tax Compliance  

Question: I have just started work and my employer has informed me I am responsible for paying my own tax. Does this require me to put away 20% of my wages? What are my tax responsibilities? Answer: In this case you're... more

Posted 21/10/2008 Updated 5/06/2009 Tags: Income Tax Overseas Income Rental Property Tax Compliance Tax Returns  

When you are a NZ tax resident you are required to declare your worldwide income in your NZ tax return which includes your overseas investment property. The way it works is that the costs are deducted off the rental in... more

Posted 21/10/2008 Updated 13/01/2010 Tags: Business Employing Income Tax PAYE Shareholders  

Yes your company can become an employer and employ you via the payroll. This means that each pay day PAYE is deducted from your wages and on the 20th of each month the PAYE get's paid to IRD. Your wages become a cost to... more

Posted 17/10/2008 Updated 3/03/2011 Tags: Business Income Tax Structures Tax Compliance  

Sole Trader A Sole Trader is basically when you go out and do something for money but are not actually employed as an employee by a business or person. You use your own IRD number for invoicing and all profits are... more

Posted 8/10/2008 Updated 3/03/2011 Tags: Accounting Business Income Tax Tax Compliance  

When you operate a business, each year you are required to prepare financial reports showing all of the business income and expenditure incurred which will result in an overall net profit or loss for the year. If your bu... more

Posted 8/10/2008 Updated 25/04/2009 Tags: Family Home Income Tax Tax Compliance  

If you have a property that is your family home this is excluded from the income tax rules, so there is no tax payable on the sale of it. However if a person has a regular pattern of acquiring and disposing of, or... more

Posted 7/10/2008 Updated 16/10/2008 Tags: Accounting Claimable Expenses Income Tax Tax Agents Tax Returns  

Using a tax agent to prepare your business or rental property accounts and returns will ensure your returns are correctly calculated and prepared and will make sure you are saving as much tax as possible. Also... more

Posted 7/10/2008 Updated 9/11/2009 Tags: Claimable Expenses Income Tax Interest Loans  

If you are in business and are unable to pay your tax bills out of your normal cashflow – borrowing money to pay tax entitles you to claim a deduction for the interest payable on the loan. So keep all loan statements... more

Posted 7/10/2008 Updated 24/03/2011 Tags: Business Claimable Expenses Income Tax Rental Property  

You are allowed to claim a proportion of your home costs for running your business from home. The percentage claimable is worked out based on the area of your office divided by the area of your home - for example say... more

Posted 6/10/2008 Updated 2/02/2011 Tags: Income Tax LAQC Rental Property  

Important: from 1 April 2011 LAQCs will cease and a transition to alternative registrations and / or structures will need to happen. An LAQC is a normal limited liability company registered with IRD as a loss... more

Posted 6/10/2008 Tags: Depreciation Income Tax Rental Property  

Depreciation is the devaluation of your rental property building at a small percentage per year – this becomes a cost like rates, interest etc and makes your overall loss bigger – which equals better tax refunds. When yo... more

Posted 6/10/2008 Tags: Claimable Expenses Income Tax Rental Property  

You are only allowed a deduction for repairs and maintenance where the expenditure is required to maintain an asset in the condition it was initially acquired. If you add something extra to the house – this is likely to... more

Posted 6/10/2008 Updated 3/03/2011 Tags: Income Tax LAQC Rental Property Shareholders  

Important: from 1 April 2011 LAQCs will cease and a transition to alternative registrations and / or structures will need to happen. Here's one to keep in mind for Loss Attributing Qualifying Company owners. If for... more