🚗 Self-Employed Profit
Did you also earn wages?
If you are working for food delivery services such as Uber Eats, Doordash, Delivereasy or rideshare services such as Uber, Didi etc, it comes under the self-employed job category. You are responsible for managing your own tax obligations and must file the tax return. Unlike a salary job, your income is paid to you "gross" (Tax not deducted). You must file an IR3 individual tax return at the end of a financial year (March 31) to report your total profit and pay the required income tax.
While doing food delivery or rideshare business, your "Net Profit" is the total amount you earned from the platform minus allowable business expenses such as fuel, vehicle registration cost, insurance, WOF/COF fee etc. You can connect with an accountant so that they can figureout what all expences can be added by checking your statements. If you are GST registered (mandatory if you earn over $60k/year), your income tax is calculated on your profit excluding GST.
Another important piece of information to keep in mind is that, if your tax bill (Residual Income Tax) is more than $5,000 for the financial year, the IRD will likely put you on Provisional Tax for the following year.
📌 Note: This tool provides only an estimate based on current New Zealand tax rates. There are several other factors comes into consideration when the actual tax calculation is performed. For professional advice, we recommend contacting a registered tax accountant or visiting the IRD website.