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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 15: Choosing to use GST ratio

You could also call this:

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

If you meet certain requirements for a tax year, you can choose to use something called a GST ratio for the matching income year. To do this, you need to tell the Commissioner that you want to use the GST ratio before the income year starts. The requirements you need to meet are explained in section RC 16(2) and (3). This choice is available to you each tax year if you meet the requirements.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519844.

Topics:
Money and consumer rights > Taxes
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RC 14: Paying 1 instalment for tax year, or

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

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RC 16: Who may use GST ratio?, or

“Requirements for using GST ratio to calculate provisional tax”

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

RC 15Choosing to use GST ratio

  1. A person who meets the requirements of section RC 16(2) and (3) for a tax year may choose to use a GST ratio for the corresponding income year if they inform the Commissioner of their election before the start of the income year.

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Notes
  • Section RC 15 list of defined terms inform: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).