Provisional Tax Installment due 28th August
The first Provisional Tax installment is due on the 28th August. Provisional Tax is a way of paying your Income Tax throughout the year instead of paying one large amount at the end of the financial year so it is important to budget for it. If your balance date is the 31st of March, you will have three instalments dated three installments on 28th August, 15th Jan and 7th May.
If the amount of residual tax you pay in a year is above the $2,500 threshold, you will be required to pay Provisional Tax to the IRD in the following year. This applies to self-employed income, rental income, income earned as a contractor or from a partnership and overseas income.
Our clients would have received their Provisional Tax Notice in the mail by now. Please call us if you need further clarification on how this has been calculated.