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Income Tax Act 2007

General collection rules - Terminating provisions

RZ 2: Amount of provisional tax based on 1997–98 or earlier tax year

You could also call this:

“Calculating provisional tax for superannuitants based on pre-1998 income”

When you need to figure out how much provisional tax you owe based on your 1997-98 tax year or earlier, there are special rules to follow. These rules are for New Zealand superannuitants, which means people who get superannuation payments from the government.

If you were a New Zealand superannuitant in the 1997-98 tax year, your residual income tax (the tax you still need to pay after deductions) is calculated in a special way. When working out your provisional tax, you pretend that you didn’t have to pay the New Zealand superannuitant surcharge. This surcharge was an extra tax that some superannuitants had to pay.

You also pretend that you didn’t have any of this surcharge taken out of your payments. This means the amount of residual income tax used to work out your provisional tax might be different from what it actually was at the time.

These rules apply when using the methods described in sections MB 4 and MB 5 of the tax law to calculate your provisional tax. However, some parts of section MB 5(3) and (4) have different rules that don’t use this special calculation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520551.

Topics:
Money and consumer rights > Taxes
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RZ 1: Certain elections to become person with provisional tax liability, or

“Choosing to pay provisional tax for non-standard tax years”

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RZ 3: Standard method: 2010–11 to 2012–13 income years, or

“Rules for calculating provisional tax from 2010 to 2013”

Part R General collection rules
Terminating provisions

RZ 2Amount of provisional tax based on 1997–98 or earlier tax year

  1. For the purposes of sections MB 4 and MB 5 other than section MB 5(3) and (4) of the Income Tax Act 2004 (which relate to the methods for calculating provisional tax), and for a person who is a New Zealand superannuitant for the 1997–98 tax year, the person’s residual income tax for the tax year or for an earlier tax year is the amount that would have been their residual income tax if they—

  2. had not been liable to pay the New Zealand superannuitant surcharge; and
    1. had not paid any New Zealand superannuitant surcharge by way of surcharge deduction.

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