Key Facts and Updates About New Zealand Tax Returns for 2025

As we enter the 2025 tax season, New Zealand businesses face a continuing challenge: the need to remain compliant while also identifying opportunities for growth. Whether you’re a startup founder, an owner of a small to medium-sized enterprise (SME), or a director overseeing complex financial matters, simply submitting your tax return on time is no longer enough. This year, effective tax planning could offer your business a vital edge.

The 2025 tax landscape introduces key updates that warrant close attention. Being aware of these changes not only ensures compliance but could also result in valuable tax savings.

Let’s break down what you need to know about filing your 2025 New Zealand tax return. Also, a few smart tips for both individuals and businesses to stay ahead.

Key Insights on Tax Returns in New Zealand

In New Zealand, the financial year starts from 1 April to 31 March. So, the 2025 tax return covers the period from 1 April 2024 to 31 March 2025. Everything must be reported in New Zealand dollars, including taxable income and deductions. Filing an annual income tax return is mandatory, even if you regularly submit GST returns, as income tax is a separate duty.

Moreover, if you file late, you could face penalties and interest charges and even lose the chance for an extension if you’re using a tax agent. But don’t worry! If you realise you’ve missed something after submitting your return, you can always amend it to make sure everything’s accurate.  

What’s New for New Zealand Tax Returns 2025?  

Tax Year and Filing Deadlines NZ

• If you’re filing your own individual tax return for the year ending March 31, 2025, it’s due by July 7, 2025.
• If you’re using a chartered accountant with an extension of time, the deadline is March 31, 2026.
• For companies with a balance date of March 31, tax returns are due by July 7, 2025, if filing yourself.
• If using a tax agent with an extension of time, the deadline is March 31, 2026.
• Company tax liabilities need to be paid by February 7, 2026, if you file yourself or work with a tax agent without an extension.
• If you’re using a tax agent with an extension of time, the payment is due by April 7, 2026.

Individual Tax Returns New Zealand

1. You need to file a tax return if you earned any income from running a business, being self-employed, or doing contract work. You also must file one if you made over $200 in untaxed income in New Zealand. This includes capital from overseas or rental properties.
2. The IRD will get in touch with you to automatically analyse your tax return if your only sources of income are dividends, interest, and salaries generated in New Zealand. 
3. Taxable income can include things like your pay from a job, interest from savings, dividends from shares, money earned from your business, and income from renting out property.
4. For example, you can claim a tax credit for taxes withheld before payment, including PAYE deductions from your employer, Resident Withholding Tax (RWT), and Imputation Credits on dividend and interest certificates.
5. A refundable tax credit of up to $520, the Independent Earner Tax Credit may be available to anyone who makes between $24,000 and $70,000 annually. 
6. As long as business expenses contribute to the creation of taxable income, they may be deducted from business income on a tax return. Expenses that involve “personal elements” are not deductible. Additionally, you are unable to deduct costs related to receiving a PAYE-taxed pay or earnings.

Company Tax Returns New Zealand

1. Whether or not a business was trading or turning a profit, it still has to file a corporation tax return.  
2. There will be a late filing penalty for tax returns that are filed after the deadline. If you also delay paying your taxes, you may face extra charges for late payment and interest on the unpaid amount.
3. Company tax returns help work out how much tax a business needs to pay for the year. In New Zealand, the company tax rate is currently 28%. 
4. If your company makes a loss during the year, the tax return shows how much of that loss can be carried forward. You can then use it to reduce your tax when you make a profit later.
5. Trading profits, interest income, and investment income are all considered taxable income.  
6. You can sometimes receive a tax credit that helps lower your bill. For example, if your company hires and trains new apprentices under an approved scheme, you may qualify to claim a tax credit. 
7. Business expenses can be deducted from company income on a tax return, provided they are incurred solely and exclusively for the company.

Strategic Tips for Navigating Common Business Challenges with the IRD 

Understanding how the IRD works to file your tax return correctly is important. Here are some key things to remember:

• The IRD can check your tax returns to make sure you’re following the rules.
• If you don’t follow tax laws, the IRD can charge fines and penalties.
• The IRD offers tax tables and calculators to help you work out how much tax you need to pay.
• Employers must take PAYE tax from employees’ pay and send it to the IRD.
• If you are unable to pay your full tax bill, the IRD may provide you with a payment plan option.
• If the IRD finds any mistakes or missing info in your tax return, they can send you an updated tax notice.
• Employers must deduct Pay As You Earn (PAYE) tax from employees’ salaries and wages.
• The deducted PAYE tax must be remitted to the Inland Revenue Department (IRD).
• The IRD offers payment plans for taxpayers who are unable to pay their tax debt in full.
• The IRD can issue tax assessments if errors or omissions are found in tax returns.
• Some companies provide tax pooling services to simplify how businesses handle their tax payments.
• Businesses must keep records like receipts, bank statements, invoices, and employee pay details for at least 7 years. Getting help from a tax agent or Chartered accountant can also help avoid mistakes and penalties.

How can Geca Chartered Accountants help with Business Tax Returns?

Running a successful business isn’t just about hard work – it’s about having the right strategy and support, especially when it comes to finances and taxes.  As your trusted advisor, GECA is here to take the stress out of preparing and filing your business tax returns and financial statements. We ensure you stay fully compliant with all tax regulations while also using our expertise to help you legally and efficiently minimise your tax liability. In essence, we offer peace of mind, ensuring that your business is on the right track with advice and services that support your long-term success. 

Save time and money with our efficient and affordable services, designed specifically for small business owners. We provide clear, actionable advice to help you seamlessly manage your tax returns and financial accounts. Book your FREE Strategic Discussion today to see how our expertise can support your business’s growth and peace of mind.