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Tax Year

The standard tax year in New Zealand is 1 April to 31 March. Subject to approval, alternate tax years may be used.

Tax Return Filing

Annual tax returns should be filed no later than 7 July following the close of the previous tax year when the tax year ends between 1 October and 31 March. For tax years ending between 1 April and 30 September, the tax return must be filed by the 7th day of the 4th month following the close of the tax year.

When a taxpayer is registered with a tax agent, the due date is extended by 2 months.

Financial Reporting

For tax income years staring beginning on or after 1 April 2014, financial accounts or general- purpose financial reports must be filed along with the annual tax return.

Companies with annual revenue exceeding NZD 30 million or assets exceeding NZD 60 million must file a general- purpose financial report, and companies below that threshold must submit financial accounts. However, for subsidiaries in New Zealand of multinational companies, the threshold holds are NZD 10 million annual revenue or NZD 20 million assets.

A small company exemption applies for companies that are not part of a group and neither income nor expenditure exceeds NZD 30,000.

Reporting for Marketplace Operators

Effective 1 January 2024, online marketplace operators resident in New Zealand are required to collect and report information about sellers who provide services, as defined by the Organisation for Economic Co-operation and Development (OECD), through their marketplace.

Defined services are:

Personal services (including any time- or task-based work, such as ridesharing and graphic and web design services); and
Rental of immovable property, such as car-parks, short-stay and visitor accommodation.

Information Collection and Reporting

The online marketplaces are required to collect and report information about a seller, including name, date of birth, address, income earned and tax information number (TIN) and the country that issued it.

The online marketplaces need to keep records showing the steps they took to collect the information they have relied on for the performance of their due diligence and reporting requirements. Non-compliance penalties may apply.

The OECD has developed a model set of rules for reporting and exchanging data. The information must be reported using the OECD Sharing and Gig Economy XML Schema.

Tax Payments

Taxpayers are generally required to make provisional tax payments. The number of payments and timing depends on the tax year- end, the option chosen for calculating the payment, and whether or not the taxpayer is registered for GST and the frequency of GST payments. Taxpayers using the standard method for paying provisional tax but exceeding the safe harbor threshold of NZD 60,000 residual income tax are liable to Use-of-Money-Interest (UMOI) from the date of the final instalment on the difference between the residual income tax and the payments made.

If residual income tax (tax due less any tax credits) of the previous year is less than NZD 2,500, provisional payments are not required. Non-residents with no establishment in New Zealand are also not required to make provisional payments.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, beginning 1 April 2020, for the income year 2020-21, the provisional tax payment threshold for small taxpayers is increased from NZD 2,500 to NZD 5,000. Small taxpayers are therefore required to pay tax by 7 February in the year following the year in which the return is filed, instead of paying instalments throughout the year.

Effective 15 April 2020, losses incurred in the income years 2019-20 or 2020-21 can be carried back for one year to provide cash flow for businesses. Companies with losses are entitled to a refund of tax paid in the previous year. The deadline for re-estimating provisional tax is extended from the date of the final instalment until the date on which the tax return is due or filed, whichever is earlier.

There are 3 methods for calculating the payment amounts.

Standard Method (automatic)

Using the standard method (automatic), the payments are based on 105% of the previous year's residual income tax due. When a return has not been filed by the time a provisional payment is due, the payment is based on 110% of the residual income tax of the year prior to the previous year.

Estimation Method

Taxpayers may opt to base provisional payments on estimated income, which may be revised prior to each provisional payment. Any deemed underpayment of tax on a payment date iswill be subject to interest.

Ratio Option

The ratio option is available for taxpayers registered for GST, and subject to certain other conditions. With this method, taxpayers pay provisional tax based on the amount of GST taxable supplies made in each 2- month period using a ratio percentage provided by the tax authorities.

Payment Dates

When using the standard or estimation method the payments are due as follows:

1st instalment payment is due on 28 August;
2nd instalment is due on 15 January; and
3rd instalment is due on 7 May.

These dates apply when the taxpayer is not registered for GST, or is registered and pays GST monthly or every 2 months. If they taxpayer pays GST every 6 months, provisional payments are due on 28 October and 7 May.

When using the ratio method, provisional payments are due on 28 June, 28 August, 28 October, 15 January, 28 February and 7 May.

The above dates are for taxpayers with standard tax years ending on 31 March. For taxpayers using alternate tax years, the provisional payment dates are shifted.

Final Tax

If provisional payments are less than the final assessed tax or exceed the final assessed tax, interest will apply on tax due or tax refunded. Any final payment is generally due by the 7th day of the 11th month following the close of the tax year, which is 7 February if using the standard tax year and extended by 2 months if registered with a tax agent.

Tax Pooling

Provisional taxpayers can utilize the services of tax pooling intermediaries to remit provisional tax payments. The advantage of using a tax pooling intermediary, is that any underpayment of tax is offset against tax overpayments in the same pool. This helps reduce/ avoid the use of money interest on under paid tax and increase interest on overpaid tax. Effective 3 July 2014, tax pooling arrangements can also be used to pay interest owed as a result of a tax dispute or amended assessment (prior to this, the use of tax pooling arrangements was restricted to only the tax due).

Availability of E-Filing

The electronic filing of tax returns in is available in New Zealand. Information on e-filing can be found on the Inland Revenue E-File info webpage.

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