Paying the tax you owe
There are several different types of tax you may have to pay on the profits made from your property sale.
Income tax
As an individual buying and selling property or as a partner in a partnership you will need to pay income tax. You can do this by sending us an Individual tax return (IR3), or an Individual tax return - non-resident (IR3NR) if you live overseas.
Please read the Buying and selling residential property (IR313) booklet and find out more about paying income tax.
Provisional tax
As a buyer and seller of properties it's likely your tax to pay will be more than $2,500, so you'll have to pay provisional tax.
For more detailed information read the IR313 and our booklet Provisional tax (IR289).
Goods and services tax (GST)
Goods and services tax (GST) is a tax on the supply of most goods and services in New Zealand. GST can apply to people who buy and sell properties.
Please read the IR313 and go to our GST section for further information.
If more than one person is involved in buying and selling property
If you're in a partnership of two or more people, you'll need to get an IRD number by completing an IRD number application - non-individual (IR596) form. This return will show how the income was calculated and the amount of each partner's share.
Where a couple (such as a husband and wife, civil union or de facto) is involved in buying and selling property, you don't need a partnership IRD number or Partnership income tax return (IR7). Each partner includes a copy of the accounts in their individual tax returns.
Forms and guides
You will find all the forms and guides referred to in this page under "Forms and Guides".
Date published: 25 Feb 2008
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