Return Filing for 31 March 2025 Income Tax Returns
As the filing deadline for 31 March 2025 income tax returns approaches, it is important for individuals, companies, trusts, and partnerships to ensure their tax affairs are up to date. Timely filing is not only a compliance requirement but also a key step in maintaining good financial management and avoiding unnecessary penalties and interest.
In New Zealand, income tax returns for the 2025 financial year must be filed by the applicable due date set by Inland Revenue, unless an extension of time applies through a registered tax agent. Missing the deadline can result in late filing penalties, interest on unpaid tax, and increased scrutiny from Inland Revenue, particularly where delays become habitual.
Why timely filing matters
Filing your return on time provides clarity around your actual tax position. For many businesses and investors, this confirms whether additional tax is payable or if a refund is due. It also allows for more accurate cashflow planning, as you can prepare for upcoming provisional tax obligations based on confirmed figures rather than estimates.
Late filing can also impact financing and lending applications. Banks and lenders often request up-to-date financial statements and filed tax returns when assessing borrowing capacity. Delays in filing can therefore slow down refinancing, business purchases, or property investment plans.
Key information required
To complete your 31 March 2025 income tax return accurately, you should ensure the following information has been provided:
Financial statements for the year ended 31 March 2025
Details of all income, including rental, business, and investment income
Records of expenses and supporting invoices
Loan statements and interest summaries
Dividend and portfolio investment entity (PIE) income details
Any changes in business structure, ownership, or trust arrangements
Providing complete and accurate documentation early helps reduce errors and avoids last-minute stress close to the deadline.
Consequences of missing the deadline
If a return is not filed on time, Inland Revenue may impose late filing penalties depending on the entity type and income level. In addition, if tax remains unpaid after the due date, use-of-money interest will apply, increasing the overall cost.
Persistent non-compliance can also increase the likelihood of audits or reviews. Inland Revenue is increasingly using data matching and analytics to identify discrepancies, making timely and accurate filing more important than ever.
Planning ahead for future years
The return filing process should not be viewed as a once-a-year compliance exercise. Instead, it is an opportunity to review your overall tax position, assess provisional tax requirements, and plan for the year ahead. This may include restructuring loans, reviewing shareholder drawings, updating trust records, or considering asset purchases to optimise deductions.
Final reminder
If you have not yet provided your financial information or approved your draft return, it is essential to do so as soon as possible. Early action ensures your return is filed correctly, on time, and with minimal risk of penalties or interest. Proactive tax management today will support stronger financial decisions and smoother compliance in the future.