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Income Tax Act 2007

General collection rules - Provisional tax - Table R1: Summary of instalment dates and calculation methods for provisional tax

RC 14: Paying 1 instalment for tax year

You could also call this:

“When you only need to pay one instalment of provisional tax for the year”

You only need to pay one instalment of provisional tax for the tax year if you fit into one of these groups:

  1. You’re new to business and your first business day happens between 30 days before instalment D and the end of the income year.

  2. You haven’t given your tax return for last year by instalment D because you were given extra time, and your residual income tax from two years ago was $5,000 or less.

  3. You pay GST every six months, and either your first business day is between 30 days before instalment C and the end of the income year, or you meet the same conditions as point 2 but for instalment C instead of D.

If you’re in one of these groups, you pay your instalment on the date of instalment F in your income year. The amount you need to pay is worked out using section RC 10.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519841.

Topics:
Money and consumer rights > Taxes
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“When you need to pay two instalments of provisional tax instead of three”

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“How to choose using a GST ratio for your income tax”

Part R General collection rules
Provisional tax: Table R1: Summary of instalment dates and calculation methods for provisional tax

RC 14Paying 1 instalment for tax year

  1. This section applies for a tax year to—

  2. a person with an initial provisional tax liability whose first business day occurs in the period that starts 30 days before the date of instalment D and ends at the end of the corresponding income year:
    1. a person liable to pay provisional tax whose return of income for the preceding tax year is not provided on or before the date of instalment D if—
      1. they were required to provide a return for the preceding tax year but, under section 37 of the Tax Administration Act 1994 or an extension under that section, are not required to provide the return by the date of instalment D; and
        1. their residual income tax for the tax year before the preceding tax year was $5,000 or less:
        2. a person who pays GST on a 6-monthly basis if—
          1. their first business day occurs in the period that starts 30 days before the date of instalment C and ends at the end of the corresponding income year; or
            1. they meet the requirements of paragraph (b)(i) and (ii) as if the reference to instalment D in paragraph (b)(i) were a reference to instalment C.

            2. The instalment is payable on the date of instalment F for the person’s corresponding income year.

            3. The amount of the instalment is calculated under section RC 10.

            Compare
            Notes
            • Section RC 14(1)(b)(ii): amended, on , by section 26(1) (and see section 26(2) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
            • Section RC 14(2): amended, on , by section 173(1) (and see section 173(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).