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Industry guidelines Ngā aratohu ahumahi

Education centres and income tax

Find out here about your income tax return filing obligations if you are an education centre.

Exemptions from paying income tax

You do not need to file income tax returns if your education centre is:

You must, however, keep accurate records to work out your liability for other taxes, and for audit purposes.

If the education centre is a non-profit centre

If the centre’s net income (taxable income after expenses) is over $1,000, you must file an income tax return and pay tax on the income over $1,000.

Incorporated bodies

The rates of tax are:

  • 28 cents in the dollar for incorporated centres from the 2012 income year onward, or
  • 30 cents in the dollar for 2009 and 2010, and 33 cents in the dollar for 2008 or earlier.

If your centre's income is taxed at the company rate, note that this rate reduced from 30% to 28% for the 2011-12 income year onwards.

Unincorporated bodies

Tax rates for 2011

Income range Tax rate
$0 to $14,000 11.5%
$14,001 to $48,000 19.25%
$48,001 to $70,000 31.5%
$70,001 and higher 35.5%

Tax rates from 2012 onwards

Income range Tax rate
$0 to $14,000 10.5%
$14,001 to $48,000 17.5%
$48,001 to $70,000 30%
$70,001 and higher 33%

This type of centre will usually complete either an Income tax return for clubs or societies (IR9), or an Income tax return: estate or trust (IR6).

If the education centre is a business

Education centres that are run to make a profit must file a set of accounts and one of the following types of returns:

  • Individual tax return (IR3) for a sole trader
  • Income tax return companies (IR4) for a company (shareholders must file individual returns)
  • Income tax return: estate or trust (IR6) for a trust
  • Income tax return partnerships (IR7) for a partnership (individual partners must also file IR3 returns).

If your centre does not have financial accounts prepared, you can use our:

  • Rental income schedule (IR3R)
  • Schedule of business income (IR3B), or
  • Farming income (IR3F)

forms to work out the taxable income. You can also use an Accounts information (IR10) form that you can file with the return instead of accounts.

You can complete the IR3 and IR4 online under "Get it done online".

You can download the forms here under “Forms and guides”, or order copies by calling our 0800 self-service line on 0800 257 773.

Due dates for tax returns

Provisional tax

Centres that are non-profits or businesses may be liable for provisional tax when their residual income tax is more than $2,500 for the year. The due dates for the three instalments of provisional tax depend on the centre's balance date.

Find out more information on provisional tax

If the centre has a 31 March balance date

You must send us the tax return by 7 July. If the return is being done by a tax agent it may be possible to file it later, because many agents have extensions of time for filing their clients' tax returns.

If the approved balance date is not 31 March

You must send us the tax return by the seventh day of the fourth month after the balance date.