Running a business: The income tax obligations of a business
Budgeting for tax payments
It is essential that you budget for all the tax payments you are required to make. These payments include:
- income tax on your net profit, which is calculated in your annual income tax return
- goods and services tax that you collect in charging for your goods/services when you are registered for GST
- PAYE and other deductions from employees' wages when you are registered as an employer.
How to budget
You may find it useful to put money aside in a savings account especially for tax payments. For specific advice on what percentage of your income to put aside for tax purposes, contact your accountant or financial adviser, or a business tax information officer or a Maori community officer at Inland Revenue.
Date published: 14 Jan 2005
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