Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Core provisions - Calculating and satisfying income tax liabilities

BC 5: Taxable income

You could also call this:

“How to calculate your taxable income by subtracting tax losses from your net income”

Your taxable income for a tax year is what you get when you take away any tax losses you have from your net income. To figure out your taxable income, you first need to know your net income. Then, if you have any tax losses that you can use, you subtract these from your net income. The rules for how to deal with tax losses are explained in another part of the law called ‘Treatment of tax losses’.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512344.

Topics:
Money and consumer rights > Taxes
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BC 4: Net income and net loss, or

“Calculating your income after expenses”

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BC 6: Income tax liability of filing taxpayer, or

“How to calculate the income tax you owe if you file a tax return”

Part B Core provisions
Calculating and satisfying income tax liabilities

BC 5Taxable income

  1. A person's taxable income for a tax year is determined by subtracting any available tax loss that the person has from their net income under Part I (Treatment of tax losses).

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Notes
  • Section BC 5 list of defined terms tax loss: repealed (with effect on 1 April 2008), on , by section 47 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).