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Accounting and Taxation in New Zealand

Accounting and Taxation in New Zealand

There are different kinds of accounting principles and taxation rules in New Zealand; many accounting firms all over New Zealand provide accounting and taxation services. Some tax consultants are also available in tax consultants.


Introduction of Taxes:

When you are a contractor, self-employed, or running your own small business, the basic understanding will make your life easier; even you can outsource the accounting work to accounting firms in New Zealand and taxation work to tax consultants in New Zealand. Required by the Inland Revenue Department (IRD) in New Zealand. You would not necessarily have to pay all taxes; what you pay and when you pay depends on how much you have earned, your business structure. You will spend some taxes by yourself and some on your business, and if you have employees, you will collect and pass to Government on their behalf.

Anyone who earns money in New Zealand should pay income tax including contactor, business, and self-employed. Taxable income can be from different sources, including salary, wages, interest, profit, and dividends. If you are:

  • You have to file the individual income tax return (IR3) as a sole trader.
  • Each partner must file their separate income tax return (IR7) in partnership.
  • Set up a company; your business needs to file a companies income tax return (IR4).

Do you have to register yourself in Inland Revenue if you are not sure how you are registered?

You will also need details of your business's financial records that summarize your expenses and income. Your returns can be filed online, or a form can be downloaded from the Inland Revenue Department (IRD) website.

Scheduled Payments:

Schedule payments mean taking tax from your pay at source; it will be deducted from your tax expense at the end of the year.

New tax rules have expensed the scheduled payment rules for contractors. Many contractors can now choose tax deducted from their pay if the payer agrees. However, those paid and hired from recruitment agencies must have taxes removed.

All contractors can select the rate to deduct tax at New Zealand tax residents from 10% to 100%.

FIRMs in the industry provide bookkeeping, accounting, and Auditing services. Their financial services are related to financial reporting, auditing, and taxation. Some industry companies also offer business assistance or advice.

Main Activities of Accounting Services:

Followings are the main activities of accounting services in New Zealand.

  1. Bookkeeping Services.
  2. Auditing Services.
  3. Taxation Services.
  4. Accounting Services.

In bookkeeping services, the service provider maintains your business's books and records your business transaction on accounting software.

In Auditing services, the firm provides the services of internal and external audits to their clients. The external audit is conducted at the end of your accounting period. In internal auditing, the client and firms agreed to payroll audit, internal controls compliance, etc.

What are the Taxation Services?

The tax consultants provide taxation services to businesses and individuals in taxation services. They calculated the taxes and advised clients for tax mitigation according to tax rules.

What are the Accounting services?

In accounting services, the accountant applies accounting standards and their compliance.  The accounting services have a broader scope of services for accountants; the accountant and client can agree on the services. You can choose accounting services or some specific services for outsourcing. If you are looking for a certified, qualified accountant, you can choose outsourcing services to expert professionals anywhere in New Zealand.

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