Plain language law

New Zealand law explained for everyone

BB 1: Imposition of income tax
or “Income tax: What it is and how it's set”

You could also call this:

“Your main tax obligations: calculating, paying, and withholding”

You need to calculate and pay your income tax for each tax year. You do this using the rules in subpart BC.

If you’re a non-filing taxpayer, you don’t have to file a tax return.

If you have to pay provisional tax, you must pay it for the tax year following the provisional tax rules.

If you have to withhold any money, you must do this following the rules in subpart BE.

If you have any other duties related to income tax or other taxes, you must follow the rules in subpart BF.

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Next up: BB 3: Overriding effect of certain matters

or “How tax avoidance rules and international agreements can override other tax laws”

A person's income tax liability for a tax year must be calculated, and satisfied by the person, under subpart BC (Calculating and satisfying income tax liabilities).
Despite subsection (1), a non-filing taxpayer is not required to file a return of income.
A person liable to pay provisional tax must pay provisional tax for a tax year under the provisional tax rules.
A person who has a withholding liability must satisfy it under subpart BE (Withholding liabilities).
A person who has an obligation in relation to income tax or ancillary tax under subpart BF (Other obligations) must satisfy it under that subpart.

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Notes

Section BB 2(5): amended, on 23 March 2020, by section 82(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section BB2 list of defined terms income tax: inserted, on 23 March 2020, by section 82(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).