A government has social responsibility to provide for its services to its citizens. To provide these services, a government needs to raise revenue to pay for its expenses. The revenue is raised by various means such as individual tax, corporate tax, excise duty, import duty etc.
What is GST?
GST is a tax levied on goods and services consumed in New Zealand under the Goods and Services Act 1985. It is calculated at 15% on the cost of the item. GST is collected on goods and services sold (output tax) and paid on goods and services purchased (input tax). This GST amount is paid to the IRD (Inland Revenue Department) or received from the IRD as a refund.
You can choose to register for GST if your annual gross income is below $60,000. It is optional if the gross income is below $60,000. If your gross income is above $60,000, then you must register for GST. It is mandatory. The GST return can be filed monthly, bi monthly, or six monthly depending on your circumstances. Please contact us to find out which filing is ideal for your situation.
You can register for GST on cash basis, invoice basis or on a hybrid basis. We can advise you on which of the above three is ideal for your situation.
We have been doing GST returns for small businesses like yours for about two decades. You need expert advice on this. Why not call us today?
What is an income tax?
An income tax is a tax levied on an individual or company’s income. Income includes an employee’s wages and salaries, profit from business operation, rental income, dividend income, interest income, partnership income etc. A tax levied on this income is called an income tax.
Any income that you earn over $200 each year is subject to tax. If you are a wage earner, then your employer will most likely will deduct the tax from your wages or salaries and will be paying PAYE (Pay As You Earn) tax on your salary on your behalf. In most cases if your only source of income is from employment with PAYE deducted, then you need not file a tax return at the end of the year.
However if you have other sources of income such as rental properties or self-employment income, then you will need to file a Personal Tax Return (IR3). We at Auckland Systems Management Associates NZ Ltd have helped several customers file their individual tax returns. Depending on the individual situation, we have helped to get a refund from the IRD. Why not call us today to find out if you are eligible for a tax refund?
If you operate as a company, then you are subject to tax on the net profit. The tax rate is 28%. There are several deductions you can claim such as rent, home office, vehicles expenses, professional association fees etc. Your company will have to file a tax return annually, usually before the 7th of July for the preceding income tax year. We have helped several clients with filing their IR4 Company Tax Returns. We can provide you with a competitive quote for our services. Why not call us today?
As explained earlier, this is Pay As You Earn (PAYE) tax and is automatically deducted from your salary and wage income by your employer and paid to the IRD on your behalf. The tax rates vary depending on the income bracket. You can view the current tax rates by visiting www.ird.govt.nz.
Auckland Systems Management Associates NZ Ltd can help you as a small business owner to meet your PAYE tax obligations. We provide complete Payroll services from A to Z and it is much simpler than you think. We have partnered with leading Payroll services provider and can give you customised online solutions to meet your needs. Why not have a chat today?
Fringe Benefit Tax is payable on any fringe benefits paid to your employees. These could be various benefits such as motor vehicles given to your employees for private use or gifts valued more than $300 in any quarter. We can help assess your FBT requirements and provide you solutions to meet your tax obligations. Why not call us today?