Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

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

RC 37: Availability of early-payment discounts

You could also call this:

“When small businesses can get discounts for paying tax early”

You can get early-payment discounts for your income tax in certain situations. This applies to you if you’re a small-business person who doesn’t have to pay provisional tax under section RC 3(3). You also need to meet one of these conditions:

You’ve never had to pay provisional tax before, and either you’ve never received an early-payment discount, or it’s been more than 4 years since you last got one and you haven’t earned money from a business in that time.

Or, if you have paid provisional tax before, it’s been more than 4 years since you last had to pay it, and you haven’t earned money from a business during that time.

If you meet these requirements, you might be able to get an early-payment discount on your income tax. You can find more details about this in sections RC 38 and RC 39.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519920.

Topics:
Money and consumer rights > Taxes
Previous

RC 36: Persons affected by adverse events, or

“This provision about help for people facing hard times is no longer active”

Next

RC 38: Crediting income tax with early-payment discount, or

“Getting a discount for paying your small business income tax early”

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

RC 37Availability of early-payment discounts

  1. Sections RC 38 and RC 39 apply for an income year to a small-business person who has no obligation to pay provisional tax under section RC 3(3) and, for earlier income years,—

  2. has never been liable to pay provisional tax and either—
    1. has never received an early-payment discount; or
      1. has not derived assessable income from a business in a period of 4 income years starting after the latest income year for which they received an early-payment discount; or
      2. has not derived assessable income from a business in a period of 4 income years starting after the latest income year for which they were liable to pay provisional tax.

        Compare
        Notes
        • Section RC 37: amended, on , by section 178(1) (and see section 178(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).