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Businesses and organisations pay income tax on their profit (their income, minus any expenses).

Generally, businesses and organisations file their income tax returns at the end of their first year of business and pay their tax in a lump sum at the end of the year.

After the first year, they pay in instalments called provisional tax during the year. Provisional tax payments are usually combined with GST payments. 

Self-employed people are taxed as individuals. 

Business type Rate
Self-employed the tax rate for individuals
Most companies 28%
Māori authorities  17.5%
Non-profit organisations registered and incorporated under the Incorporated Societies Act 1908 28%
Unincorporated organisations the tax rate for individuals

A trust or estate does not pay tax on settlements or on property passed to an estate on death. They pay tax on any income, such as income from the property held in trust or by the estate. The amount of tax to be paid depends on the individual circumstances of a trust or estate.

Income tax for trusts and estates

Last updated: 01 Apr 2024
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