Let’s face it. You wake up today, make up yourself a cup of coffee, do your work with an immense level of productivity. You see the todo notification for filing the income tax. You try to figure it out yourself but it’s annoying so you ended up postponing it. That’s what happens with most of us on a regular basis when it comes to filing the tax return.
In order to understand the tax return system of NewZealand, you need to first know what income tax is and why is it necessary to file. Well, if you’ve been facing trouble in the domain of income tax filing, then you have entered the right realm of the internet.
What is the Income Tax?
An Income Tax is a tax imposed by the government on the income generated by businesses and individuals within their jurisdiction. In any country, the income tax is filed annually by the taxpayers in order to clear their tax obligations. It is a crucial part of any country’s development and can significantly impact the entire economy.
Benefits of Paying Income Tax on Country
Now you know what income tax is. It’s time to learn how paying the income tax will impact the country you live in. You need to know that income tax is a source of revenue for any country and its government. Here’s the list of benefits of paying income taxes on the country.
- All the proud news that you see on the newspaper or news channel every single morning is because of the income tax. That space mission for which you are proud of is because of the taxpayers.
- The roads you use on a daily basis for all your commute is possible because of the funds generated by the income tax. That traffic signals, street lights, pedestrian overbridge are all developed because of the money given by taxpayers.
- The traffic cops manning the road, regular cops doing their job, soldiers at the border, firefighters trying to save people from gigantic fires – these are all possible because of the income tax.
- You go out to the nearest park to find some peace that is again constructed by the government using the money of the taxpayers.
These are just a few of the countless things that are there and are possible because of the money given by the taxpayers. Now, you might think that if I skip filing the tax return for this year, what wrong could happen. Well, a citizen can either help build and strengthen the country by paying income taxes or he can damage it by choosing not to. In essence, it’s all just a tremendous butterfly effect.
Benefits of Paying Income Tax on Individual
Well, paying income taxes annually not just help a country to develop and become stronger, it also benefits the individual in more than one way. Here are some of the few examples we would like to share with you.
- Bank loans:
Your eyes are on that dream house for the last couple of months or maybe you want to purchase that expensive car to give yourself a treat. You might want to finally start that business you always wanted to. For all these things to happen, you sometimes need to knock at the bank for the possible loan opportunity.
Generally, the income tax return is one of the many criteria that banks have in order to sanction loans to any individual. When you file your income tax returns annually, then your likelihood of getting a bank loan significantly increases. - International travel:
Surprisingly, the Income-tax returns can also decide the fact that whether you are eligible to travel to a certain country or not. During your visa processing, the interviewer can ask you for your proof of income tax returns. It can date back to as long as three years. When asked, you will have to show your income tax returns if you wish to travel overseas.
This is specifically true for countries such as the US, Canada, UK or Europe among many others. Now, this is not just the case for a business trip but it also applies for the vacation as well. - High cover life insurance:
If you are planning to finally get that high cover life insurance for yourself or your family member, then you need to make sure that you file your income tax returns every year. Companies that provide life insurance - Income tax refund & Carry forward of losses:
If you have paid income tax in excess due to any reason, then you have the privilege to apply for an income tax refund. In order to do, you need to file the income tax return first. Otherwise, you will have to let the refund go.
The same goes for carrying forward of losses. You need to first file the income tax return for the same. - Peace of mind:
Lastly, paying your income tax return and filing them annually will give you peace of mind. The fear of income tax notice for non-compliance will vanish right away. It is quite important to have peace of mind to live a happy lifestyle.
With that said, it becomes quite crucial for any business or individual to pay income tax returns with sheer consistency. With income tax, you are not just only benefiting yourself but are giving back to your country so that it can develop and become a nation that you will be proud of.
Now that you decided to file the income tax return in order to be a responsible member of the country, then you might be looking for some guide to do so. It is worth mentioning that filing income tax returns is quite a hectic process and you should get the help of experienced accountants if you don’t know what you’re doing.
Speaking of experienced accountants, we would like to introduce our tax service that helps businesses and individuals to file their income tax returns. With our experienced accountants at your disposal, all you need to do is focus on your business and the strategy to grow it even further. We will keep the hectic and painful process of filing income tax returns so that you can enjoy your warm cup of coffee tension free.
To become our client or for more information, you can connect with us at admin@goodkiwi.co.nz. You can also get in touch with us by heading over to the contact page.
