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Income Tax Act 2007

General collection rules - Terminating provisions

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

You could also call this:

“Rules for calculating provisional tax from 2010 to 2013”

When you need to calculate your provisional tax liability, there are special rules for certain years and types of taxpayers. These rules change how much provisional tax you need to pay.

If you’re a new personal tax rate person, for payments due on or after 1 October 2010 for the 2010-11 income year, you use 95% instead of 105% to work out your tax.

For the 2011-12 income year, new personal tax rate people use 95%, while new company tax rate people use 100% instead of 105%.

There are also changes for calculating tax based on your previous year’s tax. For the 2010-11 income year (for payments from 1 October 2010), new personal tax rate people use 95% instead of 110%.

In the 2011-12 income year, new personal tax rate people use 95%, and new company tax rate people use 105% instead of 110%.

For the 2012-13 income year, new personal tax rate people use 100%, and new company tax rate people use 105% instead of 110%.

These rules are part of section RC 5, which talks about how to calculate provisional tax liability.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520553.

Topics:

Money and consumer rights > Taxes

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

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

RZ 4: GST ratio method: 2010–11 to 2013–14 income years, or

“Special rules for calculating provisional tax using GST ratio method from 2010 to 2014”

Part R General collection rules
Terminating provisions

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

This section applies to the calculation of a person's provisional tax liability, when section RC 5 (Methods for calculating provisional tax liability) applies,—
for instalments payable on or after 1 October 2010 for the 2010–11 income year and for instalments for the 2011–12 and 2012–13 income years, if the person is a new personal tax rate person:
for instalments payable for the 2011–12 and 2012–13 income years, if the person is a new company tax rate person.

The standard method under section RC 5(2) is modified so that—
for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using 105%, the amount of provisional tax payable is calculated using 95%, if the person is a new personal tax rate person:
for the 2011–12 income year, instead of using 105%, the amount of provisional tax payable is calculated using—
1. 95%, if the person is a new personal tax rate person; or
2. 100%, if the person is a new company tax rate person.

The standard method under section RC 5(3) is modified so that—
for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using 110%, the amount of provisional tax payable is calculated using 95%, if the person is a new personal tax rate person:
for the 2011–12 income year, instead of using 110%, the amount of provisional tax payable is calculated using—
1. 95%, if the person is a new personal tax rate person; or
2. 105%, if the person is a new company tax rate person:
for the 2012–13 income year, instead of using 110%, the amount of provisional tax payable is calculated using—
1. 100%, if the person is a new personal tax rate person; or
2. 105%, if the person is a new company tax rate person.

Notes

Section RZ 3: substituted, on 1 October 2010, by section 29 of the Taxation (Budget Measures) Act 2010 (2010 No 27).