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Paul Martin Chartered Accountant Ltd :: Accounting, Taxation and Business Advisory :: Auckland, New Zealand
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Provisional Tax and GST Reminders

Paul Martin • December 9, 2015

The holiday season is nearly here! As well as preparing for Christmas, you also need to remember that a range of

tax payments are due on 15 January 2016

Note: these dates apply to those clients for whom we prepare tax returns. Different dates will apply for those clients for whom we don't prepare returns. Please ask us if you'd like more information.

 TAX TYPE WHO/ WHAT  WHEN IT'S DUE 
  PAYE   large employers return and payment  7 December (due to 5th falling on a weekend)
     15 January
     5 February
     
   large and small employers return and payment  21 December (due to 20th falling on a weekend)
     20 January
     22 February (due to 20th falling on a weekend)
     
 GST  return and payment for the period ended 30 November  15 January
   … for the period ended 31 December  28 January
   … for the period ended 31 January  29 February (due to 28th falling on a weekend)
     
  FBT  for employers with a November balance date under close company option - annual return and payment  7 December
   for employers with a December balance date - annual return and payment  15 January
   quarterly return and payment (if completed quarterly)  20 January

Provisional and Terminal Tax

I pay provisional tax…    And my balance date is… So my provisional tax is due next… 
 2 monthly (6 times a year)  September, July, May, March, January or November  15 January AND 29 February
(due to 28th falling on a weekend)
   October, August, June, April, February or December  28 January
     
 4 monthly (3 times a year)  July, March or November  15 January
   August, April or December  28 January
   September, May or January  29 February (due to 28th falling on a weekend)
     
 6 monthly (twice a year)  May or November  15 January
   June or December  28 January
   July or January  29 February (due to 28th falling on a weekend)
     
 Terminal tax  December  Terminal tax payment due 15 January
   January  Terminal tax payment due 9 February
(due to 7th falling on a weekend and
Waitangi Day 'Mondayised' to the 8th)
     

Other basic things to remember in relation to income tax/ provisional tax and GST payments:

  1. Filing your tax return . Income tax returns are due on 7 July every year, unless you have an extension of time. You need to file an individual income tax return (IR3) if you are a sole trader, or, if you own a company, your company needs to file a company income tax return (IR4) including a copy of your business's financial records (IR10).
  2. Claiming expenses . You can sometimes reduce your tax bill by claiming business expenses. You need to have good records and receipts as supporting documents. If you are using your home for business, you may be able to claim part of your household expenses like telephone bills, electricity bills and mortgage interest.
  3. Residual income tax . If you owe less than $2500 of income tax to IRD you just need to pay it at the end of the tax year. But if your last residual income tax payable was more than $2500, you have to pay provisional tax for the following year. 
  4. Provisional tax calculation . There are three ways to calculate the amount of provisional tax you should pay, the standard, estimation and ratio option. If you are not registered for GST, you can't use the ratio option. 
  5. Due dates for provisional tax and GST payments . The payment schedule and number of times you need to pay depends on the method you use to calculate your provisional tax. Please visit IRD Provisional tax basic information to check the due dates for your provisional tax.

Make sure to file and pay your tax on time to avoid penalties and use of money interest. If you have concerns about paying your tax in full or on time, please don't hesitate to ask assistance from our tax advisors to see what options might be available for you. You could also use a tax pooling service like Tax Management New Zealand. You can reduce your IRD interest costs by up to 30 percent and eliminate late payment penalties if you purchase your tax shortfall from Tax Management New Zealand. 

Please call us on (09) 576 4166 or request an appointment online if you need help managing your upcoming tax obligations.

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By Paul Martin • December 4, 2023
There were some key takeouts of interest to many of our clients from the recently signed coalition agreements between National, ACT and New Zealand First and the formation of the new Government. In particular there are a number of policies which will likely benefit landlord clients who own residential rentals. I have summarised some of these below. 1. Return of Interest deductibility for residential rental properties Interest deductibility for residential rental property owners will return. It will be phased back in over three tax years: • 2023/24 tax year: 60% of interest cost will be deductible. • 2024/25 tax year: 80% of interest cost will be deductible. • 2025/26 tax year: 100% of interest cost will be deductible. 2. Reduction in bright-line period National signalled in their pre-election campaign that the bright-line period for residential rental property sales would reduce from 10-years to 2-years. While the exact implementation of this policy is not yet known, it is good news on the horizon for residential property investors. 3. Reinstatement of 90-day no-cause termination notices The new government will reinstate 90-day no-cause tenancy termination notices. This will avoid many unnecessary disputes in the Tenancy Tribunal and gives landlords more confidence in letting to possibly “marginal tenants". Many landlords have avoided what they considered to be risky tenants because eviction for anti-social behaviour was so difficult. With this reinstatement, landlords might be more inclined to give a marginal tenant a chance because they know that if the tenant misbehaves, they won’t be stuck with them. If you would like more information on how these changes might affect your personal circumstances, please feel free to contact us to discuss further.
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