Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Income from business or trade-like activities

CB 1: Amounts derived from business

You could also call this:

“Money you earn from your business is counted as income”

If you get money from running a business, that money is called income. This means you need to count it as part of your earnings.

However, if the money you get is considered ‘capital’, you don’t have to count it as income. Capital means money that’s not part of your regular business earnings, like when you sell a big piece of equipment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512399.

Topics:
Money and consumer rights > Taxes
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“Types of income you don't have to pay tax on”

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CB 2: Amounts received on disposal of business assets that include trading stock, or

“How to handle money from selling business assets, including stock”

Part C Income
Income from business or trade-like activities

CB 1Amounts derived from business

  1. An amount that a person derives from a business is income of the person.

  2. Subsection (1) does not apply to an amount that is of a capital nature.

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