Your tax obligations will depend on your business structure, how you operate and whether you have employees.

That said, all businesses must

• have an IRD number and register for GST of their turnover is over $60,000 a year
• prepare returns for Inland Revenue such as tax, GST and FBT returns
• pay provisional tax during the year based on what they expect to earn
• work out their annual profit, based on their balance date each year, so they can pay the correct amount of tax
• if they employ staff, make deductions from wages and pay them to Inland Revenue. 

If you have any other tax-related queries, you’ll find more information and some really helpful tools at www.ird.govt.nz/images/flash/tfb

Do you have an IRD number?

You’ll need an IRD number before you start in business. If you’re a sole trader you’ll use your own IRD number, but if you form a partnership or company you’ll need to get a separate IRD number for the business from Inland Revenue. You can get the forms you need online or by calling Inland Revenue. If you register for GST you’ll be given a GST number - in many cases this will be the same as your IRD number.

What is your balance date?

A balance date is the date your business financial year ends, usually 31 March. If you want a different date you need to apply to Inland Revenue.

Will you have customers overseas?

If you intend to trade outside New Zealand either directly or through the internet you’ll need to get expert advice on tax issues.