Free invoice generator and tax tools for New Zealand

A New Zealand small business deals mainly with Inland Revenue (IRD), which collects income tax, GST, PAYE and fringe benefit tax. Self-employed people and unincorporated organisations are taxed on profit at the individual rates; most companies pay 28%. Tax is paid in one lump sum after the first year, then through provisional tax instalments, which apply once the last return left more than $5,000 to pay and are usually combined with GST payments.

GST is charged at 15% and becomes compulsory once turnover passes $60,000 in 12 months. Employers must register with IRD, deduct PAYE and any student loan repayments from pay, and file employment information on every payday; the deductions are usually paid by the 20th of the following month. Fringe benefits are taxed through quarterly FBT returns. ACC levies are charged alongside, and KiwiSaver contributions are deducted from pay and passed on through the employer.

The latest enacted reform is Investment Boost, which lets a business deduct 20% of the cost of new or new-to-New-Zealand assets in the first year, for assets first available for use on or after 22 May 2025, with no cap on value. Budget 2026 proposals published on 28 May 2026 were still subject to change as they went through Parliament.