At the end of every fiscal year, there is a lot of mess that small or big business owners put themselves into. Unorganized records, incomplete books, and no professional chartered accountants. Every March end, you or your accountant will have to file for income tax returns which are usually due by July 7. The task can be a daunting one and can lead to major mistakes if you are doing it for the first time. Here are a few things that you should remember before you file income tax return.
Points to remember before filing for ITR
#1 Work out the returns that you have to file
There are usually three different types of return that you as a small business owner will have to file for. Discuss with your chartered accountant and see which one you will have to file.
- Individual tax return (IR3)
An IR3 or IR3NR is required for non-New Zealand residents. If you have been earning any sort of income other than salary, interest or wages, you will need to file for IR3. Taxable Maori authority distributions are also exempted.
- Companies income tax return (IR4)
Every resident of New Zealand must file for an IR4 every year. You will have to file for IR4 via an online procedure which usually takes about an hour.
- Partnerships and look-through companies (LTC) income tax return (IR7)
The partnership companies that are registered in New Zealand have to file an IR7. Even LTC will be required to show the final income which should be after expenses. The companies will also have to attach an attribution of partnership income or loss (IR7P). LTC will be required to attach an income/loss attribution (IR7L).
#2 Saving time is crucial
Filing income tax returns can be a long and taxing task. If you do not have professional chartered accountants, be prepared to spend a good number of hours doing the same. Therefore, one should use the online medium through which returns can be filed. The myIR allows the return of IR3, IR4, and IR7 to be filed.
If you are filing any other type of return, you will be required to send it via post.
#3 Consider seeking professionals
This is a crucial decision that every business owner has to make. You can either do the filing process yourself or hire a professional chartered accountant who can do the task for your company. The task of filing income tax return can take up long hours and it can be very tiring. Moreover, a small mistake can lead you to a huge mess.
Every business owner must consider hiring chartered accountants to make sure everything is being done properly. Even though you will be required to spend some extra money, it will save your time and efforts. Intel Accountants provide affordable packages and free consulting to ensure you get the best bookkeeping and accounting services for your business. Hire professional chartered accountants and live a worry-free life during the fiscal year end. Get a quote today!
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