You will need to complete an income tax return each tax year. The tax year for most businesses is 1 April to 31 March. As a New Zealand resident you will be taxed on your worldwide income. When you complete a tax return, you must include your income from all sources (including that from overseas).
If you are operating your business as a company, partnership or trust, you will need to file a separate tax return for your business.
Income tax is payable on the net profit from your business, which is the income earned less any business expenses. Some expenses that can be deducted from the income are:
- rent, rates, power and phone costs for the business premises
- purchases of raw materials or trading stock
- business vehicle and transport costs
- wages paid to employees
- stationery and supplies for the business.
However, certain types of deductions are not permitted. These include deductions from your business income for:
- personal expenses
- money drawn as personal remuneration.
