It is important to know when your provisional tax is due to IRD. Your provisional tax dates will be based on two factors:
- your balance date (i.e. when your tax year ends) and;
- what accounting method you use to calculate your provisional tax obligations (i.e. standard, accounting income method,estimation or ratio option)
For example, the majority of New Zealand businesses have a March balance date and apply the standard method of calculating provisional tax. This means that their 3 provisional tax dates are:
- 28 August (first provisional tax date)
- 15 January (second provisional tax date)
- 7 May (third provisional tax date)
For the definition of provisional tax (and other accounting terms), check out our Glossary page.