Tax
Broad-base low-rate system with 15% GST and no capital gains tax
A deliberately broad-base, low-rate system: GST at 15% on almost everything with very few exemptions, no general capital gains tax, no payroll tax and no inheritance tax.
Key rules
- Deadline — Income tax return (IR3) for the 31 March year end: due 7 July, or later via a tax agent
- Deadline — GST registration required when turnover exceeds $60,000 in any 12-month period
Governing law
- Income Tax Act 2007 (s. BD 1)
- Goods and Services Tax Act 1985
- Tax Administration Act 1994
In practice
The tax year ends on 31 March. GST is the cleanest broad-base consumption tax in the OECD: a single 15% rate with almost no exemptions — no zero-rating for food or domestic fuel — which is why it raises so much at a comparatively modest rate. New Zealand has no comprehensive capital gains tax; instead specific regimes catch particular gains, chiefly the bright-line test on residential land, the financial arrangements rules and the foreign investment fund rules. There is no stamp duty, no payroll tax and no estate duty. Employers deduct PAYE, and KiwiSaver contributions are deducted from wages unless the employee opts out.