Business income tax
When running a business you need to account for income tax on your profits and the expenses/deductions you may claim against your income. During the tax year you must generally pay provisional tax, which is a series of instalments of income tax for this tax year. You pay income tax on your net profit for the year. To work out your net profit, deduct your business expenses from your income for the year.
Business income tax: the basics
Learn the basics of business income tax plus such as what a business pays income tax on, information on income tax during the first year of business, and the early payment discount available to some making voluntary provisional tax payments in their first year of business.
Glossary of business income tax terms
A glossary of terms related to business income tax, such as balance date, capital expenditure, depreciation, net profit and sole trader. Find the simple explanations of terms you may not be familiar with.
Paying tax
Learn about which income tax rate applies to your type of business, when income tax returns should be sent in, and what income tax returns to use.
Claiming business expenses
Most businesses incur expenses when generating income and most of these can be deducted from its income to arrive at its net profit or taxable income. Certain business expenses that are paid for out of business income cannot be claimed as allowable business expenses.
Claiming expenses for your home business
If you are working from home, you may be entitled to claim a portion of your household bills as business expenses. These include rates, insurance, power, mortgage interest and depreciation. It's important that you keep all invoices and records of the costs.
Claim business expenses for the use of a private vehicle
When a personal vehicle is used for business purposes, you may claim a portion of the running costs. This article will help you find out if you meet the criteria for compensation, how to use a logbook to document travel, and how to calculate the portion of expenses to claim back.
Calculating entertainment and travel expenses
Use this handy tool to help you understand travel and entertainment expenses.
Claiming depreciation on business assets and saving on income tax
Find out if you can claim depreciation on your business assets and reduce your income tax. Inland Revenue explains different depreciation methods and how to account for depreciation.
E-commerce and income tax
Find out about residency of companies, double taxation, royalties and non-resident withholding tax (NRWT), and e-commerce intermediaries and services.
Tax guide for selling online
Inland Revenue summarises the tax obligations for individuals and businesses trading or selling goods online, for example on an Internet auction site such as Trade Me.
Inland Revenue guide to online trading
A guide to online trading, how to get started, how to treat website costs, and the trading of domain names.
Filing your business income tax return
If you're in business, you'll need to complete and send Inland Revenue an income tax return, and attach either a copy of your financial records or a form that summarises your income and expenses. Learn about the type of income tax returns you can use depending on the type of business you have.
Provisional tax: the basics
Provisional tax is a way of paying your business income tax in instalments throughout the year. Provisional tax payments are compulsory and will help you manage your tax obligations during the year.
