Company Tax Responsibilities in New Zealand

Income Tax Responsibilities: Filing and Payment Deadlines

Each year, companies are required to submit an annual income tax return (IR4) to the IRD. The filing due date is based on the company’s balance date (typically March 31), with tax payments due April 7 if you qualify for an extension of time (EOT), or in February if not.

If your terminal tax is over $5,000, you must also pay provisional tax. The IRD generally requires this to be 105% of the previous year’s tax, paid in three instalments (or two if filing 6-monthly GST).

Terminal Tax

Terminal tax is the final tax owed for the year. This amount equals your total income tax minus any taxes already paid, such as withholding tax or any provisional tax contributions.

• Overpaid provisional tax leads to a refund.
• Underpaid provisional tax results in a terminal tax bill.

For more information, see our blog: The Ins and Outs of Provisional Tax in NZ

Terminal Tax Due Date

For companies with an accountant and extension of time (EOT), the terminal tax is due by April 7. Without an accountant or EOT, it’s due in February. If calculating terminal tax is challenging, consult your accountant.

Goods and Services Tax (GST)

GST is a tax added to most goods and services sold in New Zealand, set at 15%. Businesses with an annual turnover over $60,000 must register for GST, but those below the threshold can register voluntarily.

Tax Responsibilities: Filing GST Returns

You can file and pay GST monthly, bi-monthly, or every six months. Check our 2024 tax calendar for filing deadlines.

If you’d like to know more about GST, explore our related blog: GST for New Zealand Businesses: A Comprehensive Guide

Employer Taxes for Companies

If your company has employees, there are additional tax responsibilities.

PAYE (Pay as You Earn)

As an employer, you’re responsible for deducting PAYE income tax from each employee’s paycheck and sending it to the IRD. You’ll also deduct contributions to KiwiSaver, student loans, and ACC levies.
• PAYE payments are typically due by the 20th of the following month.
• For larger employers (annual PAYE and ESCT over $500,000), payments must be made twice a month.

Fringe Benefit Tax (FBT)

FBT applies to non-cash benefits provided to employees, such as company vehicles. The tax is calculated on the taxable value of these benefits, and it’s the company’s responsibility to pay.
FBT Filing Deadlines
FBT can be filed and paid quarterly or annually:
• Quarterly: Due July 20, October 20, January 20, and May 31.
• Annually: Due May 31 (or seven months after your company’s income year ends).

For more details, read our article Fringe Benefit Tax Explained: What You Need to Know

KiwiSaver Contributions

As an employer, you must contribute at least 3% of your employees’ gross earnings to KiwiSaver. This is filed together with your PAYE return.

Additional Company Taxes

While income tax, GST, and employer taxes are the most common, companies may have other obligations. For instance, Dividend Withholding Tax (DWT) is required when dividends are paid to shareholders. Check out our blog on dividends and imputation credits to learn more.

In Summary - Company Tax Responsibilities in New Zealand

Effectively managing company tax responsibilities in New Zealand is essential for staying compliant and avoiding unexpected expenses. With requirements ranging from income tax and GST to PAYE and fringe benefit taxes, knowing what your business owes—and when payments are due—can simplify operations and reduce financial stress.

If you're unsure about any tax obligations or want to ensure full compliance, connect with our team at Business Like NZ for expert guidance. With over 30 years of experience providing accounting and business support to Auckland businesses, we're here to help you handle tax responsibilities efficiently. Then you can keep your focus on growing your business!

About Business Like NZ Ltd, Chartered Accountants

Business Like NZ has been providing professional yet affordable tax and accounting advice to the Auckland region for years! If you would like to discuss your business with us, please contact us.