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Tax obligations and compliance for your business, including information on business expenses and getting business advice from an accountant.
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| Meeting your business tax obligations |
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| Tax obligations depend on business structure, operations and staff. |
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| To meet tax obligations, all businesses must |
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have an Inland Revenue—IRD—number |
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register for GST if turnover is over $40,000 a year |
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prepare returns for the IRD such as tax, GST and FBT returns |
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pay provisional tax based on expected earnings |
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work out annual profit to pay the correct amount of tax |
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make staff wage deductions and pay them to the IRD |
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| An accountant or financial advisor can explain your tax obligations and tell you how much you will need to put aside for tax. IRD offers a free business advisory service. |
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| The main taxes you will need to pay as a business are |
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income tax |
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GST—if you are registered |
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PAYE—if you have employees |
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ACC levies |
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| You may also need to pay |
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Fringe Benefit Tax (FBT) |
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Capital Gains Tax |
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Resident Withholding Tax (RWT) |
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| Many business costs can be claimed as business expenses. You will need to keep records, invoices and receipts for everything you buy. |
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| Things you can claim business expenses on include |
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raw materials and stock |
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operating costs, such as rent, power, phone, cleaning, stationery |
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property costs such as rates and repairs |
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legal and accounting fees |
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business insurance |
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travel and vehicle running costs |
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| Keeping good business records can make it easier to attract investors, lenders and potential buyers. Speak to your accountant about a business record keeping system. |
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| The IRD requires you to keep certain records and can ask to access them at any time. By law you must keep certain financial records for at least seven years. |
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| Business records you might need to keep include |
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company records and legal documents |
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financial accounts and bank records |
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interest and dividend statements |
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tax and GST worksheets, assessments and payment records |
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employee and wage records |
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expense records, vehicle logbook |
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| Keep business records safe |
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store copies of important documents at a different location |
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back up computer documents regularly |
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store important documents in a fireproof safe or secure filing system |
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dispose of documents by shredding or confidential disposal |
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review systems regularly |
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use passwords and other controls to help prevent mistakes and avoid fraud |
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| Businesses must comply with many laws. Lack of compliance can be costly or even lead to business closure. It’s important to get expert advice and spend time on compliance. |
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| Some of the areas covered by compliance include |
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tax |
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staff |
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company operations |
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bookkeeping |
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fair trading |
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consumer rights |
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| The information on this page is of a general nature and does not constitute tax advice. Westpac issues no invitation to anyone to rely on this information and recommends you obtain independent tax, legal and financial advice. |
