Tax & You



Your Tax

Every person that is resident in New Zealand pays income tax on all income that is earned. The income must be that which is classified as taxable income. The person receiving the income is the important criteria rather than where the income comes from.


NZ Tax Law & System

New Zealand’s laws require people and organisations to pay taxes. The NZ Govt uses these taxes to pay for govt expenditure. NZ residents have to pay income tax on their worldwide income. If you are a NZ resident most of your income will be subject to tax.



Tax Department & You

IRD are working to achieve a future where taxpayers and other customers meet obligations of their own accord. IRD try to make this easy. The community regards paying tax as contributing to society and IRD will work with all taxpayers to achieve this.


Tax Education & You

The principles laid down by Adam Smith in his book Wealth of Nations, still stand as the most widely accepted criteria for the design and operation of any tax system. Smith set out the following factors – Equity, certainty, convenient, economical.



How Tax Affects

For taxation purposes a business is carried on for profit. The important point is that a business operates with the sole purpose of making a profit. The operation must be carried on in such a manner that it could be reasonably expected it will make a profit within a reasonable time.