Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Core provisions - Calculating and satisfying income tax liabilities

BC 1: Non-filing and filing taxpayers

You could also call this:

“Explains how your tax status affects how your income tax is calculated”

You can be either a non-filing taxpayer or a filing taxpayer. If you’re a non-filing taxpayer, your income tax for the year is simply the total amount of tax that was taken out of your income during that year.

If you’re a filing taxpayer, figuring out your income tax is a bit more complex. You’ll need to follow the steps outlined in sections BC 2 to BC 6 to calculate how much tax you owe.

Sometimes, if you’re a filing taxpayer and you have what’s called “schedular income”, you might need to change how you calculate your tax a little bit. In this case, you’ll need to look at section BC 7 to see how to adjust your calculations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512331.

Topics:
Money and consumer rights > Taxes
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BB 3: Overriding effect of certain matters, or

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

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BC 2: Annual gross income, or

“The total taxable money you earn in a year”

Part B Core provisions
Calculating and satisfying income tax liabilities

BC 1Non-filing and filing taxpayers

  1. The income tax liability of a non-filing taxpayer for a tax year is the total tax withheld from amounts of income included in the taxpayer's annual gross income for the year.

  2. The income tax liability of a filing taxpayer for a tax year is calculated under sections BC 2 to BC 6.

  3. If a filing taxpayer has schedular income, their income tax liability calculation is modified by section BC 7.

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