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Thread: Don't understand deductable expenses

  1. #1
    Join Date
    Apr 2015
    New Zealand

    Default Don't understand deductable expenses

    So everytime I google this, there are lists of things you can claim on but I still don't understand what "claiming" means. This is my understanding but not sure if its correct. If I made $70,000 gross sales, $50,000 net profit, $20,000 worth of expenses, instead of my net profit being taxed at $50,000 I take the expenses $20,000 away so I only get taxed at $30,000? Please help me!

  2. #2
    Join Date
    Dec 2014


    Hello this is very simple. Actually the client i,e you, claiming IRD with proper supporting of documents I have 70,000 NZD Sales ( Invoices) out of this 20,000 NZD as expeneses ( Proper vouchers should be there), then your profit is 50,000/- Based on this 50,000 you should pay tax. In addition to that you should some additions and deductions based on your situations. It is better to find a Chartered Accountant to resolve this.

    Thanks and regards,


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