Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Core provisions - Calculating and satisfying income tax liabilities

BC 3: Annual total deduction

You could also call this:

“The total amount you can deduct from your income for the tax year”

Your annual total deduction for a tax year is the sum of all the deductions you can claim for that income year. This means you add up all the expenses or costs that the tax rules allow you to subtract from your income when you’re working out how much tax you need to pay. These deductions are matched to the same year you earned the income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512336.

Topics:
Money and consumer rights > Taxes
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BC 2: Annual gross income, or

“The total taxable money you earn in a year”

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BC 4: Net income and net loss, or

“Calculating your income after expenses”

Part B Core provisions
Calculating and satisfying income tax liabilities

BC 3Annual total deduction

  1. A person's annual total deduction for a tax year is the total of their deductions that are allocated to the corresponding income year.

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