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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 39: Credit treated as payment of income tax

You could also call this:

“Early-payment discount for small businesses counts as income tax payment”

If you’re a small-business person and you get an early-payment discount under section RC 38, you can use this discount as a credit. This credit counts as if you’ve paid income tax for the income year. The payment is considered to be made on the day after the last day of the income year mentioned in section RC 38. This means that even though you got a discount earlier, it’s treated like you paid your taxes right at the end of the year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519924.

Topics:
Money and consumer rights > Taxes
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RC 38: Crediting income tax with early-payment discount, or

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

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RC 40: Some definitions, or

“This section explains what early-payment discounts and small-business persons are”

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

RC 39Credit treated as payment of income tax

  1. A credit of an early-payment discount under section RC 38 is treated as a payment made by a small-business person on the day after the last day of the income year referred to in section RC 38 as income tax for the income year.

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