income up to $124,053. Capital gains tax New Zealand does not have a capital gains tax. Profits made from frequent stock trading or from the purchase and sale of investment property within a certain period of time is deemed to be income (and subject to income tax). Profits made from trading cryptocurrencies are also deemed to be income. Business taxes Business income tax Businesses in New Zealand pay income tax on their net profit earned in any specific tax year. For most businesses the tax year runs from 1 April to 31 March but businesses can apply to the IRD for this to be changed. A provisional tax payer is a person or a company that had a residual income tax of more than $5000 in the previous financial year. In light of COVID-19, from the 2021 tax year onwards, the provisional tax threshold was increased from $2,500 to $5,000. This means any current provisional taxpayers with provisional tax payments of less than $5,000 do not need to pay provisional tax. There are three options for paying provisional tax; standard method, estimated method and GST Ratio option. Under the standard method provisional tax payers make three provisional tax installments through the year based on the previous years tax liability. The standard method is the most common method. However a provisional tax payer can choose to estimate their provisional tax payments. Estimation allows the business owner to pay less or more tax depending on how they think their business is performing. Any underpayment is subject to interest, and no interest is paid on over payment, so it is important that they estimate their profit accurately. A provisional tax payer can also pay provisional tax using the GST ratio option. This is based on what your previous year's residual tax liability was and what your GST Taxable supplies were for that year. You then apply this percentage to your current period GST return. Under this option you pay provisional tax at the same time as you pay GST. At the end of the year the business files a tax return (due on the following 7 July for businesses with a tax year ending 31 March) and any under or overpayment is then calculated. Tax pooling was introduced in 2003 to remove some of the worry associated with estimating provisional tax payments by allowing businesses to pool their payments together so the underpayments