Sole Traders

A sole trader is an individual who runs a business on their own account. A SoleTrader will be registered under their own name and will have one TIN. If they have a business name or trading name, that name will also be attached to the TIN of the individual. They will use their TIN when they are making any tax payments.

Partnerships

A partnership is two or more people carrying on a business together. They share in the profits and losses of the business in accordance with their partnership agreement. Each partnership will have a TIN.

A partnership does not pay tax but a tax return is lodged for the partnership showing the business profits or losses and how they are distributed to each partner.

The partnership’s TIN will be written on the partnership income tax return and also used when paying PAYE, Sales Tax, and Goods Tax etc for partnership activities.  Each partner will have their own individual TIN. They will lodge their own income tax return and pay tax on their share of the partnership profits or losses. They may also pay provisional tax under this number.

Companies

Every company will have one TIN. The company will pay provisional tax, income notice tax, PAYE and any other tax payable by the company under this number.

Trusts

The trust will have a TIN and the trustee of the trust will need a TIN if they are running a business under the trust.

For more help, please refer to the Examples of Business Types, or contact IRD.