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Business income tax
Tāke moni whiwhi mō ngā pakihi

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Business income tax

Who can use the income equalisation scheme?

  • Taxpayers engaged in any farming or agricultural business on land in New Zealand
  • Taxpayers engaged in any business of fishing
  • Taxpayers (not a company, public authority or Maori authority or unincorporated body) who derive gross income from forestry in New Zealand
  • Any company carrying on a forestry business on any land in New Zealand, which in any income year derives gross income from thinning operations on the land.

Examples of activities that would qualify include:

  • beekeeping
  • animal husbandry
  • dairy farming
  • grain and seed growing
  • market gardening
  • fruit growing
  • poultry farming
  • share-milking
  • tobacco growing
  • vegetable growing
  • vineyard.

Examples of activities that would not qualify include:

  • dealing in livestock
  • leasing or bailing livestock by the bailer
  • aerial topdressing
  • hobby farming (a person farming a piece of land whose principal occupation is something other than a farmer and who isn't carrying on farming as a business with an intention to make a profit)
  • services provided to a forester to manage tree stock
  • services provided to persons carrying on a farming or agricultural business, for example:     
    • agricultural contractors
    • seed cleaners

The criteria for income from forestry are:

  • income is from either the sale of timber, or the sale of the right to cut or remove timber, and
  • income is derived by a person who is the owner of the land in New Zealand, and
  • timber that is the subject of the sale is standing, cut or fallen timber in its natural state grown on the land.