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Income Tax

Provisional Tax

Provisional Taxes

If you are a provisional taxpayer, you will generally pay your income tax 3 times a year. You will be a provisional taxpayer when your residual income tax is greater than $2,500. Very simply, residual income tax is the remainder of the tax due after the deduction of any taxes that have already been paid at source (i.e. PAYE, RWT etc). With a standard balance date of 31 March, provisional tax payments are due on 28th August, 15th January and 7th May.

We will calculate your provisional tax unless you inform us that you wish to undertake this calculation. If you are GST registered you can apply to Inland Revenue to make provisional tax payments on a ratio basis. (You make payments at the same time as your GST payment based on a rate approved by the IRD).

Terminal Tax

Should you have any terminal taxes to pay, and BLNZ is your tax agent, this payment will be due on 7th April the following year. For example, your 2012 terminal tax would be due on the 7th April 2013.

Learn more about Income & Provisional tax in the below video provided by IRD New Zealand