NZ Taxation Advisory Blog

It’s important to understand the distinctions between contractors and casual employees, as their roles, responsibilities, and entitlements differ significantly. Contractors Contractors are not classified as employees. They operate independently, bringing their own tools and equipment to complete the job. One of the key advantages of hiring a contractor is their autonomy—they decide how to complete the work by the agreed deadline. This flexibility often allows contractors to work from any location and choose hours that suit them best. However, this also means they are responsible for managing their own taxes, insurance, and other business-related expenses. Casual Employees Casual employees, on the other hand, are hired on an as-needed basis. They are not obligated to accept every offer of work, providing flexibility for both the employer and the employee. Despite their irregular work patterns, casual employees are still entitled to certain benefits, such as paid leave. In cases where wo...

As more businesses provide remote services to New Zealand, particularly from overseas, it's essential for both businesses and consumers to understand how Goods and Services Tax (GST) applies in these situations. This is especially true for digital services such as video conferencing platforms like Zoom or software subscriptions. When is GST Charged? Overseas businesses providing remote services to New Zealand are generally required to collect GST only when supplying these services directly to resident consumers . This means that if the service is being supplied to a business (Business to Business, or B2B), GST is not applied. In other words, GST does not apply to transactions between businesses, but it does apply when the service is provided to an individual consumer residing in New Zealand.  Links IRD: GST for Overseas Businesses – Supplying Remote Services into New Zealand GST for Overseas Businesses: A Guide for Suppliers

The New Zealand Inland Revenue Department (IRD) has provided clarity on the deductibility of certain company administration costs through Interpretation Statement IS 14/04. Annual Return Fees (Companies Office) Every year, companies must file an annual return with the New Zealand Companies Office. This return confirms the company’s details, such as directors, shareholders, and registered office address. The filing of this annual return comes with a fee, which is considered a statutory return fee. IRD's Interpretation Statement states the tax-deductibility of statutory return fees. Links Income Tax - Deductibility of Company Administration Costs (IS 14/04)