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 |
| Trusts and trustees - the initial amount of money put into a trust | 0% |
| Trusts and trustees - any income the trust earns | 33% |
