Accountant & Professional Fees — New Zealand Tax Rules

Claim the cost of accountants, tax agents, lawyers, and other professional advisers for your NZ business.

Claimable: Fully claimable · Tax authority: Inland Revenue

Inland Revenue Rules

• Accountancy fees for preparing your IR3 return and annual financial statements are fully deductible.
• Tax agent fees for business tax advice and compliance are claimable in full.
• Legal fees for business contracts, commercial disputes, and debt recovery are deductible.
• Consulting fees for business advice — HR, IT, marketing, management — are deductible.
• Fees for personal matters (divorce, personal injury claims, private estate planning) are NOT deductible.
• Pre-trading professional costs incurred to set up your business — incorporation, initial legal advice — may be deductible or amortisable; discuss with your accountant.

Limits

No cap — must be incurred in earning your assessable income. Dual-purpose fees (part business, part personal) must be apportioned.

Worked Example

Kiri pays her accountant NZ$1,200 for her annual IR3 and financial statements, NZ$350 for a lawyer to draft a service agreement, and NZ$180 for a bookkeeper for quarterly reconciliation. Total claim: NZ$1,730. All invoices describe the services clearly and relate to her consulting business.

Record Keeping

• Keep invoices from all professional advisers — ensure they detail the services provided
• Record payment dates and amounts for each provider
• Separate business professional fees from any personal legal or advisory matters
• Retain engagement letters or terms of service from your accountant or solicitor
• Keep tax agent correspondence for IRD audit purposes

Frequently Asked Questions

Can I claim accounting software like Xero or MYOB?

Yes. Accounting and bookkeeping software subscriptions are fully deductible business expenses. Xero, MYOB, QuickBooks, Reckon, and similar platforms are claimed in full in the year the subscription is paid.

Are legal fees for setting up a company or trust deductible?

Initial set-up legal costs may be deductible in full or need to be spread over time depending on the nature of the costs. Ongoing legal costs for commercial matters are deductible. Discuss the treatment of significant set-up costs with your accountant.

Can I claim tax agent fees even if I prepare my own IR3?

If you use a tax agent or accountant to prepare your return, those fees are deductible. If you prepare your own return, there is no deduction for your personal time, but you can deduct any software or third-party costs incurred in the process.

Are fees paid to a business coach or mentor deductible?

Yes, if the coaching relates to your existing business operations. Fees for a business coach helping you grow your current practice — pricing strategy, client acquisition, business planning — are deductible professional fees. Coaching for personal development unrelated to business income is not deductible.

How do accountant fees interact with myIR and Provisional Tax?

Your accountant can file your IR3 directly through myIR as your tax agent, often accessing an extended filing deadline (typically 31 March of the following year). They can also calculate and update your Provisional Tax estimates in myIR to ensure you are not overpaying during the year. Their fees for doing so are themselves fully deductible.