New-Zealand

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

33%

   
Tax rate on long-term capital gains Capital gains are not taxed in New Zealand.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies Since December 12, 1995, dividends are taxed at the rate of 15%.
   
Tax rate on branches A corporate tax rate of 33% is levied on branches as for any others companies.




Income tax

Fiscal year The fiscal year begins on April 1st and ends on March 31st of the next year.
   
Income tax rate For year 2002, the tax schedule applying to individuals is as follows:
From 0 to 38,000 NZD: 19,5%
From 38,000 to 60,000 NZD: 33%
Beyond 60,000 NZD: 39%.
   
Tax deductions or other allowances Several deductions and dejections can reduce the amount of taxes in New Zealand:
15 and 18 years-old people pursuing their studies can deduct a lump sum of 156 NZD.
War veterans can deduct 7,5% of their annual income.
Cleaning ladies, caretaker, minders of children and ill people can deduct a lump sum of 310 NZD.
Donations to charitable organizations imply a tax reduction of 500 NZD.
A deduction of 475NZD is granted to people with low incomes (inferior or equal to 9 500 NZD).



VAT rates

Standard rates 12,5%
Some products are exempted such as financial services and products sold by non-profit bodies.
   
Reduced rates The reduced rates vary between 0% (produced and exported services) and 12,5%.



Other important taxes


Name of tax
Rate
Fringe benefits  
up to 64%  
Donations  
of 5% to 25%  


 

Accounting

Introduction
The "Financial reporting Act" of 1993 serves of legal support in order to establish the main rules of control and certification of accounts.


General accounting principles
CONSOLIDATED BALANCE SHEET
ASSETS
CIRCULATING ASSETS
- Liquid assets
- Short-term investments
- Short-term commercial debts
- Stocks
- Other current assets
TOTAL CIRCULATING ASSETS (I)
FIXED ASSETS
- Debt.

Obligations and publications
The "Financial Reporting Act" of 1993 forces any organization to produce an annual report of the financial flows within the 5 months preceding the end of the accounting year, before disclosure to the "Registrar of Companies" for agreement. This report has to include a balance sheet, a profit and loss account and a cash flow statement.

Certification and auditing
The control of accounts must be made by a company certified by the ICANZ and known as "Chartered Accountant".

Professionals and representative organizations
The "Financial Reporting Standards Boards ( FRSB)"
The "Accounting Standards Review Board ( ASRB)"
The "Institute of Chartered Accountants of New Zealand ( ICANZ)".



Useful links
For further information, please contact the Inland Revenue or check the Tax Review Report 2001.

Last modified in 2006 - ongoing update
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