Filing income tax returns in New Zealand

Whether you’re a sole trader, run a company or manage multiple income streams, tax time can feel like a drag. We’re here to help you understand your obligations and approach tax season with confidence.​

This guide will walk you through what you need to lodge a return, important deadlines, how to get help and what to do if you’re not sure where to start.​

If you're running a business, you need to file a tax return even if you haven’t made a profit or weren’t actively trading for part of the year.​

The type of return you need to file depends on your business structure:​

Individuals need to file a return if they earn income that is not fully taxed at the source. This commonly applies if you are self-employed, receive income from a partnership or trust, earn rental or investment income, or have overseas income that needs to be declared.​

Filing a tax return allows the IRD  to calculate your final tax position, taking into account all income, deductions, and eligible tax credits.​

The standard New Zealand financial year runs from 1 April to 31 March. Once the tax year ends, individuals and businesses need time to finalise their records and file the required returns with the IRD. ​

The standard filing deadline is 7 July. This is typically applicable to individuals and businesses filing their own returns.​

If you are linked to a registered tax agent or accountant and are eligible for extension of time (EOT), you may have a later filing date. However, extensions are not automatic and depend on your compliance history with the IRD. ​

With an approved EOT, the filing deadline is 31 March of the year following the financial year (essentially 12 months after year-end).​

The purpose of the extension is not only to give businesses more time and flexibility to get their information to their accountant, but also helps spread the workload for accountants/tax agencies and avoid system bottlenecks with the IRD from everyone filing at the same time.​

If you're unsure which deadline applies to you, it's best to confirm your status with your accountant or Inland Revenue so you can plan ahead and avoid penalties. ​

Missing tax deadlines can lead to penalties and interest on unpaid tax.​

The IRD may charge late filing penalties, and if you have tax to pay, interest can apply from the original due date of your return (not from the date you file).​

If you realise you've missed a deadline, it's vital to act quickly. Filing your return as soon as possible can reduce penalties and shows the IRD that you're making an effort to get back on track. ​

If you’re unable to pay your tax by the due date, contact the IRD to discuss your options. In many cases, a payment plan can be set up to help manage cash flow and avoid further enforcement action. ​

Being prepared for year-end can make tax time far less stressful. The information you need will depend on the type of return you’re filing.​

For businesses, you’ll need the following:​

For individual/personal tax returns, you’ll need the following:​

When filing your income tax return, you can claim business-related expenses such as rent, utilities, software, tools, and home office costs.​

The golden rule is that the expense must be directly related to earning your business income.​

Some common deductible expenses are:​

The rules around deductions can be nuanced, especially where costs are partly personal and partly business-related. An accountant can help ensure deductions are claimed correctly and that you're not missing anything you're entitled to while staying compliant with IRD requirements. ​

Learn more: Beany’s guide to business expenses​

There are a few ways to file your income tax return in New Zealand, depending on how comfortable you are managing tax yourself and how complex your situation is. The right option often comes down to time, confidence, and the level of support you need.​

You can file your return directly with the IRD using myIR. This option may suit individuals with straightforward income and deductions. However, DIY-filing can increase the risk of missed deductions or errors, particularly if you have multiple income streams or business activity.​

Working with a registered accountant or tax agent in your area gives you professional support and advice tailored to your situation. This is ideal if you have time to get in-person help.​

An online accountant offers the same professional support with added convenience. Meetings, document sharing, and communication happen online, which suits business owners who already use cloud accounting tools such as Xero or MYOB. With fewer overheads than traditional firms, online accounting can also be a more cost-effective option.​

Regardless of the option you choose, you'll need to gather your income details, expense records, and supporting documents (as outlined further up).​

If you file yourself, follow the information in myIR. Some questions might be pre-filled from info the IRD has received from any employer, bank, investment platform etc…​

If you use a registered tax agent, they’ll have a questionnaire you complete which enables them to complete your return(s).
At Beany, our online questionnaire guides you through the process with explanations and space for you to attach any relevant documentation where needed. If you’re using Xero, it’s even quicker as some of our questionnaire is integrated with your Xero file so the data feeds through, reducing the amount of questions you need to answer.​

If you file yourself through myIR, the IRD will process the return and let you know whether you have tax to pay or are due a refund. ​

If you work with an accountant or tax agent, they will review your information, prepare your return, and may also produce supporting accounts or reports. If anything needs clarification, they'll get in touch before finalising and filing the return on your behalf.​

How long your income tax return takes to be processed can vary depending on the time of year and how complete your information is when it's submitted. ​

During peak periods, returns can take longer as accountants and the IRD are handling a high volume of returns (an average of 8-14 weeks, compared to 4-6 during off-peak periods). If additional information or clarification is required, this can also extend the timeframe.​

Submitting complete and accurate information early can help avoid delays and make it possible to plan for tax payments and actually make use of the financial statements for business decision-making.​

Once the IRD has finalised your income tax return, they will issue a notice confirming whether you have tax to pay or are due a refund. ​

If you're entitled to a refund, the IRD will deposit the amount directly into your nominated bank account. ​

If you have tax to pay, the IRD will issue a notice outlining the amount due and the payment date. If paying the full amount by the due date will be difficult, it's important to contact the IRD early. In many cases, a payment plan can be set up to help you manage cash flow and avoid additional penalties or interest.​

A little preparation throughout the year can make a big difference when it comes time to file your tax return. Staying organised reduces stress, saves time, and can help ensure nothing is missed. ​

Set aside money for tax: Keeping tax savings in a separate bank account can make upcoming payments easier to manage and reduce the temptation to spend funds that will be owed to the IRD.​

Your tax obligations depend on your business structure, the type of income you earn, and whether you are registered for GST or employ staff. Common obligations can include income tax, GST, PAYE for employees, and other taxes depending on your circumstances. ​

We recommend seeking professional advice to ensure you meet all compliance requirements.​

If you’ve incurred a loss
If your business has made a loss, filing a return allows the loss to be carried forward and offset against future profits, provided certain conditions are met.​

If you weren’t trading
If you were registered but not trading, you may still need to file a nil return to remain compliant and keep your records up to date with the IRD.​

If you realise you've missed information, you can usually amend your return through myIR or with the help of your accountant. If you’ve forgotten something that the IRD will be able to track back to you, it’s generally better to correct errors early, as penalties may apply if the IRD discover the error first.​

In New Zealand, many taxpayers pay income tax through provisional tax, which involves paying instalments towards the expected annual tax liability. This helps spread payments across the year rather than facing a single large bill. The amount and timing depend on your income level and business structure. If you've overpaid, you'll then get a refund. If you've underpaid you'll need to make a balancing payment (known as terminal tax).​

Read more: Income tax guide​

We work with business owners across New Zealand to make filing your income tax return easier. Book a call or get in touch to discuss your accounting requirements and explore how we can support your business.​