How corporate tax works in New Zealand
Most New Zealand companies pay 28% income tax on taxable profits after allowable deductions and adjustments. Resident companies are generally within New Zealand's worldwide-income framework, while non-resident companies can be taxed on New Zealand-source income or a New Zealand permanent establishment.
New Zealand companies can attach imputation credits to dividends for income tax paid at company level. A fully imputed dividend can carry credits at a maximum 28:72 ratio, reflecting the 28% company rate.
Companies generally pay provisional tax after their first year and may have obligations for PAYE, fringe benefit tax, employer superannuation contribution tax and GST. GST is 15% on most taxable supplies, with input-tax credits for eligible business purchases.
International groups also need to consider transfer pricing, thin-capitalisation, CFC and interest-limitation rules, as well as New Zealand's participation in the OECD international tax framework.
Tax rates at a glance
- Standard company tax
- 28%Most companies
- Mฤori authority rate
- 17.5%
- Maximum imputation ratio
- 28:72
- GST
- 15%
- GST registration threshold
- NZD 60,000
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersOperating companiesProfessional servicesHolding companiesCross-border groups
Watch out for
- The 28% headline rate is not the complete cost of running a company. Payroll taxes, ACC, GST, FBT, accounting, provisional tax and shareholder extraction all affect the result.
- A company is not automatically tax-resident only because its owners live in New Zealand. Incorporation, head office, management and control, and treaty rules can all matter.
- Imputation credits reduce double taxation for resident shareholders but do not turn dividends into tax-free income. Higher-rate shareholders may owe top-up tax.
- A company or trust that buys and sells property can fall within land-sale or bright-line rules, and anti-avoidance rules can apply to entity arrangements.
Frequently asked questions
What is the company tax rate in New Zealand?
Most companies pay 28% income tax on taxable profits. Mฤori authorities generally use a separate 17.5% rate.
Does New Zealand have a small-business company rate?
New Zealand generally uses the 28% company rate rather than a broad lower small-company rate. Business structures such as partnerships and look-through companies can produce different outcomes because income may be taxed at individual rates.
How does New Zealand company tax interact with dividends?
Companies can attach imputation credits for tax already paid. Resident shareholders include the grossed-up dividend and claim the credit, with any remaining amount determined by their own tax rate.