Not only is calculating provisional tax correctly important, it also involves some guesswork. The amount and number of payments you’ll make during the year depends on which of the four methods you use to calculate it. The methods are the standard uplift method, estimation method, GST ratio method and accounting income method.

William Petit, our Assistant Accountant/Financial Analyst, summarises the major points on calculating provisional tax.

Further resources:

• Our Calculating Provisional Tax Guide for accountants
• Our Provisional Tax Guide explained for Business Taxpayers
• Find a TMNZ Premium Partner to walk you through your options
• Check out our calendars for standard provisional tax dates and alternative provisional tax dates
• The different methods available to calculate provisional tax AIM, GST Ratio method, Standard Uplift method, or Estimation method