NZ companies pay a flat 28% tax rate on all taxable income.
Company Tax Payable
$56,000.00
Profit After Tax
$144,000.00
Tax Rate
28.0%
Effective Rate
28.0%
Key facts about company tax in New Zealand
Flat 28% company tax rate
All New Zealand companies pay a flat 28% income tax rate on their taxable income, regardless of turnover or company size. This is one of the more competitive rates in the OECD and applies equally to small businesses and large corporations.
Provisional tax obligations
Companies with residual income tax of more than $5,000 must pay provisional tax in instalments during the income year. The three methods are: standard (prior year + 5%), estimation, and the accounting income method (AIM). Most small companies use the standard or estimation method.
Imputation credits
When a company pays tax, it generates imputation credits that can be attached to dividends paid to shareholders. This prevents double taxation of company profits, as shareholders receive a tax credit for the company tax already paid.
IRD-Aligned: This calculator uses the official IRD company tax rate for the 2025-26 tax year. For complex tax situations, consult a registered tax agent.
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Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms