Business Tax



General Business & Tax

You are in business to make a profit. To the beginner, profit simply means that he or she is taking home adequate income from the business for the amount of time involved in the operation. Also consider tax on your profits.


Small Business & Tax

The courts have held that a business is not carried on unless there had existed the intention of making a profit plus a reasonable prospect of doing so. Another feature is the continuity of transactions of a similar type.



Sole Traders & Tax

A sole trader means that you are not distinct from the business itself, unlike a company where the company is a person in the eyes of the law, and the shareholders in the company are separate people in the eyes of the law.


Partnerships & Tax

When partnership profits or losses are distributed to a relative or an associated person and the IRD considers the distribution to be excessive or unreasonable, they may reallocate the distribution for tax purposes.



Companies & Tax

The benefit of a limited liability company is that the shareholders in the business do not have to pay any more than they owe on their unpaid shares (if they are unpaid) in the event of the company failing. Coy tax is 33c in the dollar.


Trusts & Tax

A trust is a legal relationship created when a person (known as a settlor) places assets in the control of another person (trustee) and these assets are intended to benefit other people (beneficiaries) or are for a specified purpose.



Fringe Benefit Tax

As an employer, you are liable to pay fringe benefit tax on the fringe benefits that you give to your employees or shareholder-employees. FBT is a tax on benefits employees receive and enjoy as a result of their employment.