[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-650525-105":3,"detail-sidebar-cat-0-en-105":80,"doc-detail-650525-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":73,"head_meta":75,"extra_data":77,"updated_unix":79},105,"en","income-tax-in-your-first-year-of-business","Income tax in your first year of business","","Income tax in your first year of business explains income tax responsibilities for new businesses, including how to file a tax return and when returns are due. It clarifies taxable business income, how net profit is calculated for sole traders, partnerships, and companies, and what expenses can be claimed as deductions. The factsheet also covers payment timing and planning, including capital vs revenue expenses, depreciation rules in New Zealand, and common examples of deductible and non-deductible costs.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/healthcare/","Healthcare",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/income-tax-in-your-first-year-of-business/650525/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/income-tax-in-your-first-year-of-business/650525.png","ImageObject",300,407,{"name":42,"@type":43},"awa","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-10","2026-10-24",true,{"@type":52,"interactionType":53,"userInteractionCount":30},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"How is taxable income for a business calculated in the first year?","Question",{"text":62,"@type":63},"Income tax is payable on net profits, calculated as business income minus allowable business expenses. Business income includes income earned from goods and services you sell, including invoices issued but not yet paid.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"What expenses can be claimed as tax deductions?",{"text":67,"@type":63},"Most expenses that are part of the cost of running the business are tax-deductible. Examples include salary and wages, rent and rates, stationery and supplies, accountants' fees, trading stock, repairs and maintenance, power and phone costs, interest on borrowed money, and insurance of business assets or premises.",{"name":69,"@type":60,"acceptedAnswer":70},"What is the difference between capital and revenue expenses for tax purposes?",{"text":71,"@type":63},"Revenue expenses are generally deductible, while capital expenses generally are not. Capital expenses are usually one-off payments for assets used in the business, and their cost is written off over a number of years through depreciation.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},650525,1792831558,{"code":4,"msg":81,"data":82},"success",[83,87,91,95,100,105,109,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":84,"show_sort_weight":85,"slug":86},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":88,"show_sort_weight":89,"slug":90},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":92,"show_sort_weight":93,"slug":94},"Exam",70,"exam",{"id":96,"doc_module":4,"doc_module_name":25,"category_name":97,"show_sort_weight":98,"slug":99},5,"Comic",60,"comic",{"id":101,"doc_module":4,"doc_module_name":25,"category_name":102,"show_sort_weight":103,"slug":104},6,"Technology",50,"technology",{"id":106,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":107,"slug":108},7,40,"healthcare",{"id":110,"doc_module":4,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},8,"Research & Report",30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":96,"slug":129},19,"General","general",{"code":4,"msg":81,"data":131},{"doc_id":78,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":106,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":30,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":26,"language":139,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":12,"update_tm":79,"read_time":96,"preview_page_count":4},3985747858093,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","Business  \nNgā Ūmanga  \nIR325 | April 2022  \nIncome tax in your first year of business  \nThis factsheet explains your income tax obligations in your first year of business. Find out here about filing your income tax returns and what expenses you can claim. We'll also explain when and how you can pay your income tax.  \nIncome tax is payable on your net profits from your business. This is all the income that comes into your business, less allowable business expenses. Business income is income earned from the goods and services you sell (including invoices you've issued but have not received payment for) .  \nWhat income is taxable?  \nThe way your business is managed will determine how you manage your cash flow and pay your income tax.  \nIf you're a sole trader or partnership  \nIf you're in business in your own name, or in a partnership, you'll usually be managing it and be responsible for all its income and debts. Usually you will not get a wage but will take money from the business when you need it -called drawings.  \nYou pay income tax on your net profits. The taxable income is the net profit the business makes after deducting all allowable expenses and before any drawings.  \nIn a partnership, the net profit is shared between the partners and included in their personal income tax returns.  \nIf you're a company  \nIf your business is a limited liability company and pays you a salary, you'll be taxed on your salary individually.  \nThe company must pay tax on its profits, which are the gross takings less all the business expenses (including your salary) . Any profits belong to the company and are taxed at the company rate. Incorporated societies and some savings vehicles are also taxed at this rate.  \nCompleting your tax return  \nYou (or your tax agent) will need to complete a tax return each year for the business. You can complete it online in  \nmyIR. Register for myIR at [ird.govt.nz/myIR](ird.govt.nz/myIR)[ ](ird.govt.nz/myIR)When are tax returns due?  \nIf you're filing your tax return yourself you must send it to us by 7 July. If an accountant or other tax agent completes it for you, they may be able to file it later.  \nTo help with your end-of-year tax return keep your accounts up to date so you can work out the profit and the amount of tax you may have to pay.  \nWhat expenses can be claimed?  \nAll businesses have expenses and most expenses that are part of the cost of running your business are tax-deductible.  \nThese are some examples of tax-deductible expenses:  \n• accident compensation levies  \n• salary and wages  \n• rent and rates  \n• stationery and supplies  \n• accountants' fees  \n• purchase of trading stock  \n• repairs and maintenance on business items  \n• power and phone costs  \n• interest on money borrowed for the business  \n• insurance of business assets or premises  \n• business vehicle and transport costs.  \nFor the 2010 income year and beyond, legal expenses incurred when buying capital assets used to derive income are tax deductible, provided your total legal expenses for an income year are equal to or less than $10,000 .  \nSome business expenses paid out of business income can't be claimed as an income tax deduction:  \n• If your business borrows money, the capital part of the loan repayments is not a deductible expense (but the interest probably will be) . Likewise, the loan is not taxable income.  \n• Income tax that the business pays is not a deductible expense, and tax refunds are not taxable income.  \n• Drawings are not a deductible expense, and money you bring into the business is not taxable income.  \nExamples of other non-deductible expenses include:  \n• the cost of plant and machinery  \n• legal fees for capital assets used to derive income when your total expenses exceed $10,000 for the 2010 income year and beyond  \n• any legal fees associated with the cost of buying capital assets prior to the 2010 income year  \n• improvements to equipment apart from repairs and maintenance  \n• private expenses such as lif","cbCaieR48ob2RTiz","https://ap.wps.com/l/cbCaieR48ob2RTiz","pdf",145306,"English","# What income is taxable?\n## Sole trader or partnership\n## Company\n# Completing your tax return\n## When are tax returns due?\n# What expenses can be claimed?\n## Examples of tax-deductible expenses\n## Non-deductible expenses\n# Capital expenses and depreciation\n# Planning for and paying income tax","[{\"question\":\"How is taxable income for a business calculated in the first year?\",\"answer\":\"Income tax is payable on net profits, calculated as business income minus allowable business expenses. Business income includes income earned from goods and services you sell, including invoices issued but not yet paid.\"},{\"question\":\"What expenses can be claimed as tax deductions?\",\"answer\":\"Most expenses that are part of the cost of running the business are tax-deductible. Examples include salary and wages, rent and rates, stationery and supplies, accountants' fees, trading stock, repairs and maintenance, power and phone costs, interest on borrowed money, and insurance of business assets or premises.\"},{\"question\":\"What is the difference between capital and revenue expenses for tax purposes?\",\"answer\":\"Revenue expenses are generally deductible, while capital expenses generally are not. Capital expenses are usually one-off payments for assets used in the business, and their cost is written off over a number of years through depreciation.\"}]","Income tax in your first year of business | PDF"]