Income tax basics for NZ businesses

Income tax is calculated on taxable income for the income year after allowable deductions and adjustments. The return type and tax rate depend on the entity. A company normally files an IR4, a sole trader files an IR3, and a partnership files an IR7 while each partner also files an IR3.

Most businesses use a 31 March balance date. A return without an extension of time is generally due 7 July. An eligible tax-agent client may receive a conditional extension up to the following 31 March. Payment dates, provisional tax and terminal tax depend on the taxpayer, method and extension status.