New Zealand’s tax system is relatively straightforward, but there are still rules, deadlines, and deductions every business owner should understand. From goods and services tax (GST) and corporate tax to deductions that can lower your taxable income, knowing how the system works helps you stay compliant and keep more of your earnings.

Below, we’ll explain how to handle business taxes in New Zealand.

What’s in this article?

• What are business tax rates in New Zealand?
  
• How do businesses file taxes in New Zealand?
  
• Common tax deductions for businesses
  
• How Stripe can help New Zealand businesses with tax compliance
  

What are business tax rates in New Zealand?

New Zealand has a relatively simple tax system with broad coverage and moderate rates. If you run a business here, you’ll probably encounter three main types of taxes: income tax, GST, and levies.

Corporate income tax

Most businesses pay a flat 28% corporate income tax. If your company is based in New Zealand, it’s taxed on worldwide income. If not, it’s taxed on only income sourced in New Zealand.

Sole traders pay tax at individual rates (10.5%–39.0%), not the corporate rate. Māori authorities (which manage communal assets) pay a lower rate of 17.5%. There’s no general capital gains tax, but some asset sales are taxed as income.

GST

New Zealand businesses charge a 15% GST on most goods and services. If your annual revenue exceeds 60,000 New Zealand dollars (NZD), GST registration is mandatory. Some sales (e.g., exports) are zero-rated, which means the tax rate is 0%, but the sales are still reportable. Others (e.g., financial services) are exempt, which means no GST can be charged or reclaimed.

GST filings happen monthly, every two months, or every six months, depending on your revenue.

Other business-related taxes and levies

• Fringe benefit tax (FBT): If you give employees noncash perks (e.g., a company car), you pay FBT. Rates depend on whether the benefit corresponds to a particular employee and how often you calculate FBT, with the highest rate set at 63.93%.

• Employer superannuation contribution tax (ESCT): Businesses deduct ESCT from the cash contributions they make to employees’ superannuation accounts. Rates range from 10.5%–39.0% as of April 2025, according to how much a particular employee earns and how long they’ve been with the company.

• Accident Compensation Corporation (ACC) levies: ACC levies fund New Zealand’s no-fault injury insurance scheme. Employers pay an earners’ levy of 1.67% of wages as of April 2025 (on a maximum of 152,790 NZD in annual earnings) and a work levy, which varies by industry.

Withholding taxes

Resident withholding tax (RWT) applies to interest earned, and the default rate for companies is 28%. If you do not provide an Inland Revenue Department (IRD) number, the rate goes up to 45%.

How do businesses file taxes in New Zealand?

New Zealand’s tax system is built around digital compliance. You can use the myIR portal to file tax returns and make payments, or you can pay over the phone or at a Westpac branch. Deadlines and payment schedules vary depending on the type of tax involved. Here’s what businesses should know.

Income tax returns

All businesses must file annual income tax returns, regardless of their revenue. The tax year runs from April 1–March 31, and returns are due on July 7 following the tax year. If you’re using a tax agent, you typically get an extension until March 31 of the following year (if all filings are current).

You can file electronically via myIR or, if necessary, via paper forms. Late filings can trigger penalties.

Provisional tax payments

Businesses that owe over 5,000 NZD pay provisional tax. This means they prepay in installments based on estimated tax liability rather than pay income tax in one lump sum. At the end of the year, payments are credited against the actual tax due. How often you pay provisional tax depends on the method you choose to calculate it and how often you pay GST. Payments can be due monthly, every two months, every quarter, or every six months. Businesses can use tax pooling intermediaries to manage timing and reduce interest or penalties.

GST returns and payments

GST-registered businesses file returns monthly, every two months, or every six months, based on revenue and preference. The default cycle is every two months, but businesses with turnovers of over 24 million NZD must file monthly and businesses with turnovers of under 500,000 NZD can choose to file every six months. GST returns and payments are due the 28th of the month following the taxable period, with the following exceptions:

• For the period ending March 31, they’re due May 7.

• For the period ending November 30, they’re due January 15.

Filing is done via myIR, accounting software, or paper forms. Payments are due the same day as the return.

Pay as you earn (PAYE) and employer filings

If you employ staff, you must deduct PAYE income tax from wages and pay ESCT. Employment information must be reported every payday through myIR, your accounting software, or paper forms.

• Due dates: Small employers must make PAYE and ESCT payments monthly (due the 20th of the next month), while large employers must pay twice monthly (due the 20th of the same month and the 5th of the next month).
  

FBT is usually filed quarterly, but small employers can choose annual filing.

Common tax deductions for businesses

New Zealand’s tax system allows businesses to deduct most ordinary operating expenses as long as they are incurred to generate taxable income. Here’s what businesses can claim.

Operating expenses

Most everyday business costs are immediately deductible, including:

• Wages and salaries

• Rent for office space or commercial property

• Office supplies, utilities, and business insurance premiums

• Marketing and advertising

• Bad debts written off

Partial deductions apply when an expense has both business and personal use, such as a vehicle. In these cases, only the business portion is deductible.

Depreciation on capital assets

Assets that last longer than a year (e.g., machinery, vehicles, computers) aren’t fully deductible up front. Instead, businesses deduct their cost over time using IRD-set depreciation rates—either the diminishing value method or straight line method.

Purchases of under 1,000 NZD can be written off immediately rather than depreciated.

Research and development (R&D) tax incentive

New Zealand offers a 15% tax credit on eligible R&D expenses to encourage improvement. Businesses must spend at least 50,000 NZD annually on R&D to qualify, and the annual R&D spending cap is 120 million NZD. To qualify, their R&D spending must address scientific or technological uncertainty and must not include routine software updates or cosmetic improvements.

Loss carryforwards

Tax losses can be carried forward to offset future profits, provided shareholder continuity of at least 49% is maintained. Carryforwards are typically allowed even after ownership changes, as long as the core business remains the same.

Charitable donations

A business can deduct cash donations to approved charities up to 100% of its net income.

Other deductions

• Look-through companies (LTCs) allow owners to offset business losses against their other income.

• Companies can claim deductions for abandoned R&D projects.

How Stripe can help New Zealand businesses with tax compliance

Managing tax obligations can be time-consuming, but Stripe automates much of the process, especially regarding GST compliance, reporting, and integration with accounting software. Here’s how Stripe makes tax compliance easier for businesses in New Zealand.

Tax collection

Stripe Tax simplifies tax collection by automatically calculating, applying, and reporting GST on transactions. Businesses register their GST numbers in Stripe, and the system handles tax collection on applicable sales. It determines the correct GST rate based on the buyer’s location and product type.

GST registration

New Zealand businesses (and foreign sellers to New Zealand customers) must register for GST once annual sales exceed 60,000 NZD. Stripe tracks sales volume and alerts businesses before they cross the threshold.

GST filing

Stripe provides itemized reports that show the total GST collected for easier tax filing. The reports can be exported for submission or imported into accounting software for reconciliation. While Stripe doesn’t file taxes, it integrates with filing services that help businesses submit their GST returns.

Xero integration

Businesses that use the accounting software Xero can accept Stripe payments directly on Xero invoices. When a payment is processed, Xero automatically records it, reconciles fees, and tracks GST. All Stripe transactions sync to Xero for real-time tracking of sales and GST for filing.

MYOB integration

Businesses that use the accounting software MYOB can use Stripe-enabled “Pay Now” buttons on MYOB invoices for easier online payments. Payments made via Stripe are automatically recorded in MYOB. Businesses can get paid faster and enjoy automated reconciliation for accurate tax reporting.

Cross-border sales

Many New Zealand businesses sell internationally, which introduces additional tax challenges. Stripe Tax automatically calculates and collects foreign sales taxes (e.g., value-added tax in Europe, GST in Australia, sales tax in the US). If a New Zealand business is required to charge tax in another country, Stripe applies the correct rate at checkout. Stripe also tracks economic nexus thresholds so that businesses collect tax only where they’re legally required to.