Working for yourself has loads of Tax advantages!
Your effective disposable income for someone working in NZ earning $60,000NZD is $47,960. Assuming you use this money to buy stuff (and who doesn’t?), you’ll be able to purchase $41,704 worth of goods and services after taking into account the 15% GST in New Zealand.
As a company, you only need to make and spend $41,704 to have the same lifestyle as someone making $60,000. Great huh?
Check out this Excel Spreadsheet calculator which determines YOUR effective disposable income!
Starting up your own company also has lots of other benefits too, R&D tax credits, rebates, eligibility for finance!
Do you have your own company? Let me know what you love about self employment!