The ultimate fact sheet on NZ tax returns

The basics

1. The financial year (tax year) in New Zealand runs from 1 April to 31 March. 
2. Taxable income and deductions must be reported in New Zealand dollars.
3. Late filing of tax returns may result in penalties, interest charges, and loss of extension of time (for those with a tax agent)
4. Income tax returns are used to calculate the amount of income tax owed for the tax year.  Even if you're filing frequent GST returns, you still must file an annual income tax return, as it is a separate tax.
5. Tax returns can be amended if you find errors or omissions after they've been filed.

Individual tax returns

1. You must file a tax return if you derived any form of business income, self-employment income, or contracting income. You also need to file a tax return if you have earned more than $200 of income that has not already been taxed in New Zealand. This includes overseas income and rental income (including your Airbnb and Book a Bach property).
2. If you only earn income from New Zealand-earned salary or wages, interest or dividends, the IRD will contact you to auto-assess your tax return.
3. Taxable income may include salary and wages, interest, dividends, business income, and rental income.
4. You can claim a tax credit for tax deducted before it was paid to you e.g. PAYE deductions made by your employer, Resident Withholding Tax (RWT), or Imputation Credits showing on dividend and interest certificates.
5. Tax returns must be filed by the 7th of July for the previous tax year if you decide to file yourself, or by 31 March of the following year if you're working with an accountant and are eligible for an extension of time (EOT) i.e. 31 March 2026 for year-end 31 March 2025.
6. Individuals who earn between $24,000 and $70,000 per annum may be eligible for the Independent Earner Tax Credit, which is a refundable tax credit of up to $520.
7. Business expenses can be claimed in a tax return against business income as long as it helps generate taxable income. You’re not eligible to claim expenses that have ‘personal elements’.  You also can’t claim expenses incurred in earning PAYE-taxed salary or wages.

Company tax returns

1. All companies must file a company tax return regardless of whether or not they were trading, or made a profit.
2. For companies with a balance date of 31 March - if you are filing yourself, your tax return is due on the 7th of July. With a tax agent (and extension of time), the deadline is the 31st of March the following year (i.e. 31 March 2026 for the financial year that ended 31 March 2025).
3. For companies with a balance date of 31 March - your tax liability needs to be paid by the 7th of February if you file your own tax return or work with a tax agent but don't have EOT. With a tax agent and EOT, the deadline is the 7th of April the following year (i.e. 7 April 2026 for the financial year that ended 31 March 2025).
4. Late filing of tax returns will result in a late filing penalty. If you are late to pay your taxes, you are liable to face both late payment penalties and use of money interest charges on any tax that was due.
5. Company tax returns are used to calculate the amount of company tax owed for the tax year.  The current company tax rate in New Zealand is 28%.
6. If your company generates a loss during the period, the tax return calculates the taxable loss that can be carried forward and offset against future taxable profits, therefore reducing your tax liability in future periods. 
7. Taxable income includes trading profit, interest income and investment income.
8. Tax credits are sometimes available. For example, if you carry out research & development and hit certain criteria relating to innovation and making advancements in science or technology, then tax credits may be able to be claimed.
9. Business expenses can be claimed in a tax return against business income as long as they are incurred wholly and exclusively for the purposes of the trade.

Get to know the IRD

1. The IRD can audit tax returns to ensure compliance with tax laws.
2. The IRD can impose fines and penalties for non-compliance with tax laws.
3. The IRD provides tax tables and calculators to help calculate the amount of tax owed.
4. Employers are required to deduct Pay As You Earn (PAYE) tax from employees' salaries and wages and remit it to the IRD.
5. The IRD can negotiate payment plans for taxpayers unable to pay their tax debt in full.
6. The IRD can issue tax assessments if it finds errors or omissions in tax returns.
7. There are tax pooling businesses (called intermediaries) that offer tax pooling services to help businesses manage their tax cash flow.
8. Inland Revenue will keep any refunds owed, and offset against any other outstanding IRD debt. Refunds will not be issued if you owe the IRD money.
9. Businesses must keep records of their income and expenses (e.g., bank statements, receipts, invoices) for at least 7 years as per IRD’s requirements.
10. Employers must keep records of employees' salaries and wages, PAYE tax deducted, and KiwiSaver contributions for 7 years.
11. Professional help from a registered tax agent or accountant can minimise the risk of errors and penalties and help ensure compliance with tax laws.

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