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Income Tax Act 2007

General collection rules - Terminating provisions

RZ 5: Calculating amounts under standard method: 2010–11 to 2012–13 income years

You could also call this:

“Provisional tax calculation adjustments for new tax rates from 2010 to 2013”

This section explains how to calculate your provisional tax payments for certain income years if you’re a new personal tax rate person or a new company tax rate person.

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’ll use a 5% reduction instead of a 5% increase when calculating your tax.

For the 2011-12 income year, if you’re a new personal tax rate person, you’ll still use a 5% reduction. If you’re a new company tax rate person, you won’t use any increase or reduction.

When calculating your second instalment for these years, there are some changes too. For the 2010-11 income year, new personal tax rate people will use a 5% reduction instead of a 10% increase.

For the 2011-12 income year, new personal tax rate people will use a 5% reduction, while new company tax rate people will use a 5% increase.

For the 2012-13 income year, new personal tax rate people won’t use any increase or reduction, while new company tax rate people will use a 5% increase.

These rules change how section RC 10 of the Income Tax Act 2007 normally works for calculating instalments.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520557.

Topics:
Money and consumer rights > Taxes
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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”

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RZ 5B: Standard method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year, or

“Outdated tax calculation method for new rates (2008-2010)”

Part R General collection rules
Terminating provisions

RZ 5Calculating amounts under standard method: 2010–11 to 2012–13 income years

  1. This section applies to the calculation of a person's provisional tax liability, when section RC 10 (Calculating amount of instalment under standard and estimation methods) applies,—

  2. 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:
    1. for instalments payable for the 2011–12 and 2012–13 income years, if the person is a new company tax rate person.

      1. In the calculation of the amount of an instalment, in section RC 10(3)(a), subparagraph (i) is modified so that—

      2. for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using a 5% uplift, a 5% reduction is used, if the person is a new personal tax rate person:
        1. for the 2011–12 income year, instead of using a 5% uplift, the amount of provisional tax payable is calculated using—
          1. a 5% reduction, if the person is a new personal tax rate person; or
            1. no uplift, if the person is a new company tax rate person.

            2. In the calculation of the amount of an instalment, in section RC 10(3)(a), subparagraph (ii) is modified so that—

            3. for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using a 10% uplift, a 5% reduction is used, if the person is a new personal tax rate person:
              1. for the 2011–12 income year, instead of using a 10% uplift, the amount of provisional tax payable is calculated using—
                1. a 5% reduction, if the person is a new personal tax rate person; or
                  1. a 5% uplift, if the person is a new company tax rate person:
                  2. for the 2012–13 income year, instead of using a 10% uplift, the amount of provisional tax payable is calculated using—
                    1. no uplift, if the person is a new personal tax rate person; or
                      1. a 5% uplift, if the person is a new company tax rate person.

                      Notes
                      • Section RZ 5: substituted, on , by section 29 of the Taxation (Budget Measures) Act 2010 (2010 No 27).