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New Zealand law explained for everyone

Income Tax Act 2007

Schedule 3: Payment of provisional tax and terminal tax

You could also call this:

“When to pay your estimated and final income tax”

This schedule provides information about when you need to pay provisional tax and terminal tax. The payment dates depend on your balance date, which is usually the end of your financial year.

The schedule includes a table that shows different payment dates for each month of the year. These dates are labelled A to H, and you need to use the row that matches your balance date. For example, if your balance date is in October, you’ll find your payment dates in the first row of the table.

There’s also information about how often you need to make payments if you’re using the AIM (Accounting Income Method) for calculating your provisional tax. You might need to pay every month or every two months. The schedule also explains how to work out your payment dates if you’ve changed your balance date and have a transitional year that’s longer or shorter than usual.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523249.

Topics:
Money and consumer rights > Taxes
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Schedule 2: Basic tax rates for PAYE income payments, or

“Tax rates for your pay and extra earnings”

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Schedule 4: Standard rates of tax for schedular payments, or

“Tax rates for different types of work and payments in New Zealand”

3Payment of provisional tax and terminal tax

Part ADates for payment of provisional tax and terminal tax

The following table is small in size and has 15 columns. Column 1 is headed Month of balance date. Column 2 is headed A. Column 3 is headed A1. Column 4 is headed B. Column 5 is headed B1. Column 6 is headed C. Column 7 is headed C1. Column 8 is headed D. Column 9 is headed D1. Column 10 is headed E. Column 11 is headed E1. Column 12 is headed F. Column 13 is headed F1. Column 14 is headed G. Column 15 is headed H.
Month of balance date A A1 B B1 C C1 D D1 E E1 F F1 G H
October 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan Sep Nov
November 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan Oct Dec
December 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb Nov Jan
January 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar Dec Feb
February 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May Jan Mar
March 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May Feb Apr
April 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun Feb Apr
May 28 Aug 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul Feb Apr
June 28 Sep 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug Feb Apr
July 28 Oct 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep Feb Apr
August 28 Nov 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct Feb Apr
September 15 Jan 28 Jan 28 Feb 28 Mar 7 May 28 May 28 Jun 28 Jul 28 Aug 28 Sep 28 Oct 28 Nov Feb Apr
Notes
  • Schedule 3 Part A table: replaced, on , by section 47(2) (and see section 47(4) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

For the purposes of this schedule, balance date, in relation to provisional tax or terminal tax payable by a person for a tax year to which an income year corresponds, means—

  • if neither of paragraphs (b) and (c) apply, the person’s annual balance date for their accounts for the income year:
    1. if the person has an income year that coincides with the tax year or is not required to provide a return of income for the tax year, 31 March:
      1. if the person is a non-resident company that does not have a fixed establishment in New Zealand, 31 March.

          1. Part ABCalculation periods for AIM method

          The following table is small in size and has 3 columns. Column 1 is headed Instalment date. Column 2 is headed 6 instalments: 2-monthly period. Column 3 is headed 12 instalments: monthly period.
          Instalment date 6 instalments: 2-monthly period 12 instalments: monthly period
          15 Jan Oct, Nov Nov
          28 Jan Nov, Dec Dec
          28 Feb Dec, Jan Jan
          28 Mar Jan, Feb Feb
          7 May Feb, Mar Mar
          28 May Mar, Apr Apr
          28 Jun Apr, May May
          28 Jul May, Jun Jun
          28 Aug Jun, Jul Jul
          28 Sep Jul, Aug Aug
          28 Oct Aug, Sep Sep
          28 Nov Sep, Oct Oct
          How to use this table:
          Find the applicable instalment date in the first column, and use the period for that instalment in the second column if section RC 9(4B)(a) or (b) applies or use the period in the third column if section RC 9(4B)(c) applies.
          Notes
          • Schedule 3 Part AB: inserted, on , by section 47(3) (and see section 47(4) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

          Part BMonths for payment under sections RC 9 and RC 22 to RC 25

           
          Monthly and 2-monthly non-ratio and non-GST provisional taxpayers

          This is the first of 3 tables. It is a small table on 2 pages having 2 columns with the second column divided in two. The first row on each page is the headings for the 2 columns.
          Transitional year length New instalment months
          0–4 mths 1 month following final month
          5–8 mths 2 5th month, month following final month
          9–12 mths 3 5th, 9th months, month following final month
          13–16 mths 4 5th, 9th, 13th months, month following final month
          17–20 mths 5 5th, 9th, 13th, 17th months, month following final month
          21–24 mths 6 5th, 9th, 13th, 17th, 21st months, month following final month

           
          6-monthly non-ratio provisional taxpayers

          This is the second of 3 tables. It is a small table having 2 columns with the second column divided in two. The first row is the headings for the 2 columns.
          Transitional year length New instalment months
          0–6 mths 1 month following final month
          7–12 mths 2 7th month, month following final month
          13–18 mths 3 7th, 13th months, month following final month
          19–24 mths 4 7th, 13th, 19th months, month following final month

           
          GST ratio provisional taxpayers

          This is the third of 3 tables. It is a small table having 2 columns with the second column divided in two. The first row is the headings for the 2 columns.
          Transitional year length New instalment months
          0–2 mths 1 month following final month
          3–4 mths 2 3rd month, month following final month
          5–6 mths 3 3rd, 5th months, month following final month
          7–8 mths 4 3rd, 5th, 7th months, month following final month
          9–10 mths 5 3rd, 5th, 7th, 9th months, month following final month
          11–12 mths 6 3rd, 5th, 7th, 9th, 11th months, month following final month
          13–14 mths 7 3rd, 5th, 7th, 9th, 11th, 13th months, month following final month
          15–16 mths 8 3rd, 5th, 7th, 9th, 11th, 13th, 15th months, month following final month
          17–18 mths 9 3rd, 5th, 7th, 9th, 11th, 13th, 15th, 17th months, month following final month
          19–20 mths 10 3rd, 5th, 7th, 9th, 11th, 13th, 15th, 17th, 19th months, month following final month
          21–22 mths 11 3rd, 5th, 7th, 9th, 11th, 13th, 15th, 17th, 19th, 21st months, month following final month
          23–24 mths 12 3rd, 5th, 7th, 9th, 11th, 13th, 15th, 17th, 19th, 21st, 23rd months, month following final month

          For the purposes of counting months under this schedule, the number is reckoned as set out in section RC 21(5).