Proposed Business Tax Calculator NZ
Speculative: this tax does not exist
New Zealand's company tax rate is 28 percent. Any other rate modelled here is hypothetical. This page models a tax that has not been introduced, legislated or announced as government policy. It exists so you can see what such a tax would cost if it were ever introduced at a rate you choose.
The rate is yours to set on the slider. The starting figure is an illustrative round number, not a proposal, and is not attributed to any political party. No numbers on this page describe current New Zealand law, and none should be quoted as though they do.
This calculator models a change to the New Zealand company tax rate, if one were made. The rate today is 28 percent, and it applies to a company's taxable profit rather than its turnover. Set the slider to the rate you want to test and the calculator shows the tax at the current rate, the tax at your chosen rate, and the difference, both annually and as a share of profit. It also shows what is left after tax, which is the figure that matters for reinvestment and for what can eventually be distributed to shareholders. Two things are worth keeping in mind when reading the result. Taxable profit is not the same as accounting profit, because some expenses are not deductible and some deductions do not appear in the accounts. And because New Zealand uses imputation, company tax paid is credited against the tax shareholders pay on dividends, so a change to the company rate shifts when tax is paid as much as how much is paid overall.
A hypothetical figure for a tax that does not exist. It is arithmetic on the rate you chose, not a forecast, a policy costing or advice.
How it works
Tax at the current rate is taxable profit multiplied by 28 percent. Tax at your chosen rate is the same profit multiplied by the rate on the slider. The headline figure is the tax at your chosen rate. The change against 28 percent is shown alongside it, so a rate below 28 percent shows a negative number, meaning a reduction. Profit after tax is the taxable profit less the tax at your chosen rate.
Worked example
A company with taxable profit of $400,000 pays $112,000 at the current 28 percent rate. If the rate moved to 33 percent the tax would be $132,000, an increase of $20,000 a year, leaving $268,000 after tax. Moving the slider the other way to 25 percent gives tax of $100,000, a reduction of $12,000.
Related calculators
- Company Tax and Imputation Calculator: company tax and credits under current law.
- Look-Through Company Calculator: the LTC alternative to a standard company.
- Proposed Digital Services Tax Calculator: a hypothetical tax on digital revenue.
- Proposed 45% Top Tax Rate Calculator: a hypothetical personal rate change.
- All Proposed Tax Calculators: the full speculative category, and what New Zealand actually taxes.