Income tax, GST, PAYE and FBT returns

Income tax

Where income is not deducted at source, a taxpayer may have New Zealand income tax filing obligations, which need to be filed on an annual basis.

Where the taxpayer is not linked with a tax agency, the due date for the income tax return is around 4 months after the balance date (i.e. 7 July for taxpayers with 31 March balance date). However, if the taxpayer is linked with a tax agency, the due date for the income tax return is extended to the 31 March following the end of the financial year.

The taxpayer may have provisional tax or terminal tax liability. The default provisional tax due date for 31 March taxpayer are 28 August, 15 January and 7 May. The due dates for provisional tax will change where the taxpayer has a different balance date. A change of balance date request shall be submitted to the IRD before the taxpayer can adopt a different balance date to 31 March.

Generally, terminal tax liability is due on 7 April following the balance date, where the taxpayer is linked with a tax agent, otherwise 7 February following balance date if the taxpayer is linked with a tax agent. For taxpayer who has a different balance date to 31 March, the terminal tax liability due date may change.

Accounting

GST

Taxpayers who provide taxable supplies of more than NZD60,000 can register for GST. They can also voluntarily register if they wish to. This may be advantageous for taxpayers in certain industries, such as export and property development.

GST filing frequency is either monthly, two-month or six-monthly, with the method being either payment, invoice or hybrid. Each option has its own criteria, so we suggest taxpayers seek advice on which method and filing frequency are most appropriate.

Due date of the GST return depends on the taxpayer’s filing frequency.

PAYE

Employers are required to deduct PAYE from employees’ salary and pay to Inland Revenue. Employment information (IR348 form) has to be provided on a pay day basis. Tax is deducted and paid progressively on a monthly or bi-monthly frequency to Inland Revenue throughout the year.

FBT

An employer who pays fringe benefit to an employee is required to pay fringe benefit tax to Inland Revenue on a quarterly, income year, or annual basis. Broadly, a fringe benefit is a non-cash benefit provided by an employer to an employee in connection with employment. An example is a vehicle provided to an employee that is available to be used privately as part of the employee’s remuneration package.

The due date for quarterly FBT return is 20 July, 20 October, 20 January and 31 May. The due date for income year or annual return is 31 May.

Tax compliance – our approach

  1. Review your tax compliance requirements, includes consideration for income tax, GST, PAYE, FBT, and related requirements.
  2. Provide our fee estimates for the tax services, as transparency and certainty of cost are important.
  3. Write to your old accounting advisor to request transfer of your historic records to make the transition seamless for you. We will also link you to our tax agency so we can fetch tax records from IRD’s systems.
  4. Manage your tax affairs carefully throughout the year with the relevant authorities.

Need assistance with filing tax returns?

Get in touch with our team who can help you stay on top of all your tax requirements, and allow you to focus on more pressing matters of your business!

Refer to our people for more information on who we are, our experience and how we can help.

We offer a free no obligation consultation where we can discuss:

  • your current tax compliance situation;
  • highlight tax issues and opportunities; and
  • how we can add value and assist.
Book a Consultation