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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 35: Further income tax credited to provisional tax liability

You could also call this:

“Using further income tax to pay provisional tax instalments”

If you’re a company that pays further income tax, you can use it to pay off your provisional tax instalments. This applies to the rules in sections RC 9 to RC 11 and sections OB 65 to OB 69.

You can use the further income tax to pay for any provisional tax instalment that’s due after you’ve paid the further income tax. The amount of further income tax you use will count as if you paid that much provisional tax on the day it was due.

The tax office will use your further income tax to pay off your provisional tax in a specific order. First, they’ll pay the earliest provisional tax instalment that’s due after you paid the further income tax. If there’s any further income tax left over, they’ll use it to pay your next instalments in order.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519914.

Topics:
Money and consumer rights > Taxes
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“How to balance tax payments between you and your company for personal service income”

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RC 35B: Treatment of overpaid provisional tax instalments calculated using AIM method, or

“How to handle excess tax paid by companies using the AIM method”

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

RC 35Further income tax credited to provisional tax liability

  1. This section applies for the purposes of sections RC 9 to RC 11 if, under sections OB 65 to OB 69 (which relate to further income tax for ICA companies), a company applies an amount of further income tax to pay an instalment of provisional tax for which the company becomes liable after the date of payment of the further income tax.

  2. The instalment is satisfied to the extent of the amount of further income tax. The amount is treated as provisional tax paid on the date on which the instalment was payable.

  3. The Commissioner must credit the amount of the further income tax in payment successively of—

  4. the instalment of provisional tax that is first payable after the date of payment of the further income tax; and
    1. to the extent of the amount of further income tax, to later instalments in the order in which they are payable.

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