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RC 39: Credit treated as payment of income tax
or “Early-payment discount for small businesses counts as income tax payment”
You could also call this:

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

In this part of the law, you’ll learn about two important terms: early-payment discount and small-business person.

An early-payment discount is a reduction in income tax that you can get under sections RC 38 and RC 39 of the law.

A small-business person is someone who runs their own business. They might work alone, with partners, or as the owner of a look-through company. They don’t use a company or trust to run their business. Most of their income comes from their business, not from things like interest, dividends, royalties, rent, or beneficiary income.

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Next up: RD 1: What this subpart does

or “This subpart outlines employer obligations for PAYE, FBT, and ESCT/RSCT rules”
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Part R General collection rules
Provisional tax: Table R1: Summary of instalment dates and calculation methods for provisional tax

RC 40Some definitions

  1. In this subpart,—

    early-payment discount means a discount of income tax under sections RC 38 and RC 39

      small-business person means a person who—

      1. conducts a business on their own account, acting alone or as a partner in a partnership or as the owner of a look-through company; and
        1. does not use a company or a trust in the conduct of the business; and
          1. derives income that is mainly from the business, and does not consist of interest, dividends, royalties, rent, or beneficiary income.

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          Notes
          • Section RC 40 small-business person paragraph (a): amended (with effect on 1 April 2019), on , by section 152(1) (and see section 152(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).