Web Developer
Tax guide for New Zealand freelance web developers and software engineers
Allowable Expenses
- Software & development tools — IDEs, hosting, cloud services, SaaS subscriptions, GitHub
- Hardware — Laptop, monitors, keyboards, peripherals — business proportion
- Home office — NZ$5/week flat rate or actual proportion
- Professional development — Online courses, certifications, technical books
- Domain names & hosting — Client project hosting, personal portfolio
Tax Tips
- Software licences and SaaS subscriptions are typically 100% deductible
- Assets under NZ$1,000 can be immediately expensed rather than depreciated
- Keep a log of your home office hours if claiming the actual proportion method
- Cloud computing costs (AWS, Vercel, Netlify) for client projects are fully deductible in the year incurred
Frequently Asked Questions
Can NZ web developers claim software as an expense?
Yes. Business software subscriptions, development tools, and hosting costs are fully deductible expenses for sole trader web developers. Annual software purchases can be claimed in the year of purchase.
What about claiming a new laptop?
If the laptop costs over NZ$1,000 and is used partly for personal use, you must depreciate it over its useful life (typically 3 years) and claim only the business proportion. If it's under NZ$1,000 and used primarily for work, you can claim it in full immediately.
Do overseas client payments count towards my GST threshold?
Generally no — services supplied to overseas clients are zero-rated for GST purposes and do not count towards the NZ$60,000 registration threshold. However, any NZ-based client revenue does count, so if you have a mix of local and overseas clients, track your NZ revenue separately.
Can I deduct the cost of a home server or NAS used for client projects?
Yes. A home server or NAS device used to store client project files and backups is a deductible business asset. If it costs over NZ$1,000, depreciate it over its useful life using IRD rates. If under NZ$1,000, you can expense it immediately.