Meeting your income tax obligations during the tax year
If your residual income tax (tax to pay) on your last income tax return is more than $2,500, you may have to pay provisional tax for the following year.
Residual income tax (RIT) is the amount of tax you have to pay, less any tax credits you may be entitled to (excluding working for families tax credits or other tax payments made during the year) and any PAYE deducted.
You can use one of these options to work out your provisional tax:
The ratio option can only be used if you’re registered for GST.
The number of times you need to pay provisional tax each year depends on the option you use to calculate your provisional tax, and how many times you pay GST (if registered).
If you have a 31 March balance date (ie your tax year ends on 31 March) and you use the standard or estimation options to calculate your provisional tax payments, your provisional tax due dates are:
|If you’re not registered for GST||If you’re registered for GST and pay monthly or two-monthly||If you’re registered for GST and pay every six months|
|First instalment||28 August||28 August||28 October|
|Second instalment||15 January||15 January||7 May|
|Third instalment||7 May||7 May|
If you have a 31 March balance date and you use the ratio option to calculate your provisional tax payments, these are due on:
|First instalment||28 June|
|Second instalment||28 August|
|Third instalment||28 October|
|Fourth instalment||15 January|
|Fifth instalment||28 February|
|Sixth instalment||7 May|
If you’re registered for GST you pay your provisional tax and GST at the same time on a combined GST and provisional tax return.
Make sure we receive your returns and payments on or before the due date. If you file and/or pay late or don’t pay the full amount, late payment penalties and interest may apply.