What Business Expenses Can I Claim in NZ?

What Business Expenses Can I Claim in NZ?

What Business Expenses Can I Claim in NZ?

One of the easiest ways to legally reduce your tax bill in New Zealand is by claiming all eligible business expenses. The IRD allows businesses to deduct costs directly related to generating income, helping lower your taxable profit and, ultimately, the amount of tax you owe.

But what exactly counts as a business expense, and how can you ensure you’re claiming correctly? Here’s everything you need to know.


1. Office Costs (Rent, Utilities, Internet, Phone Bills)

Every business has operating costs, and many of these can be claimed as deductions.

What You Can Claim:

  • Office rent or lease payments if you rent commercial space.
  • Power, water, and internet bills used for business purposes.
  • Business phone bills, including mobile plans for work-related use.
  • Home office expenses if you work from home (a percentage of your rent/mortgage, utilities, and internet).

How to Claim Office Expenses Correctly:

  • Keep detailed invoices for rent, utilities, and phone bills.
  • If working from home, calculate the percentage of home expenses used for business.


2. Vehicle Expenses (Mileage, Petrol, Repairs)

If you use a vehicle for business, you can claim a portion of the related costs.

What You Can Claim:

  • Fuel and mileage costs (for business-related travel).
  • Repairs and maintenance on business-use vehicles.
  • Insurance and registration (business portion only).
  • Leasing or depreciation if the vehicle is a business asset.

Important Considerations:

  • If you use your personal vehicle for business, you must track business-related travel using a logbook.
  • The IRD allows mileage claims based on the kilometres driven for work.


3. Marketing & Advertising (Website, Social Media, Business Cards)

To grow your business, you need to promote your services, and marketing expenses are fully tax-deductible.

What You Can Claim:

  • Website development, domain registration, and hosting fees.
  • Social media advertising (Facebook, Google Ads, LinkedIn, etc.).
  • Business branding costs (logo design, graphic design).
  • Printing business cards, flyers, and brochures.

How to Maximise Marketing Deductions:

  • Keep track of ad spend and marketing invoices.
  • Ensure marketing expenses are 100% business-related (not personal branding).


4. Professional Services (Accountant, Lawyer, Consultants)

Hiring professionals to help with your business is a legitimate deductible expense.

What You Can Claim:

  • Accounting fees (bookkeeping, tax filing, financial reports).
  • Legal fees (contract reviews, business structure advice).
  • Business consultants and advisory services.

Best Practices for Claiming Professional Fees:

  • Ensure the services directly relate to your business operations.
  • Keep invoices for all professional services to back up claims.


5. Staff Wages & KiwiSaver Contributions

If you hire employees, wages and KiwiSaver contributions are tax-deductible expenses.

What You Can Claim:

  • Salaries and wages paid to employees.
  • Employer KiwiSaver contributions (minimum 3%).
  • Contractor payments (provided they are legitimate business expenses).

Important Considerations:

  • Payments must be recorded properly and comply with PAYE and employment laws.
  • Payments to family members must reflect fair market wages to be deductible.


6. Depreciation on Assets (Computers, Machinery, Equipment)

Business assets like computers, machinery, and vehicles lose value over time. Instead of claiming their full cost at once, you can depreciate them gradually.

What You Can Claim:

  • Computers, laptops, and printers.
  • Office furniture and workstations.
  • Machinery, tools, and specialised equipment.
  • Company vehicles (business-use portion).

How to Claim Depreciation:

  • Use the IRD’s depreciation rates for different asset types.
  • Track purchase dates and values to calculate correct deductions.


How to Ensure Your Expense Claims Are Valid

Not all expenses are automatically deductible—they must be legitimate business costs.

Golden Rules for Claiming Expenses:

  • Keep receipts, invoices, and bank records for every claim.
  • Expenses must be necessary and directly related to earning income.
  • If an expense is part business, part personal, only claim the business-use portion.
  • Use accounting software to track expenses and simplify tax reporting.


Final Thoughts

Claiming business expenses correctly is one of the best ways to legally reduce your tax bill. By keeping detailed records and ensuring all claims are genuine business costs, you can maximise deductions while staying fully compliant with IRD rules.

Not sure if you’re claiming everything you should be? TaxFix can help! Our team ensures you’re making the most of tax deductions while keeping you fully compliant with the IRD.

Need expert tax advice? Get in touch with us today!

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