GST Ratio Method – meaning and definition

Under the GST ratio method, you base your provisional tax on a percentage of your taxable supplies and generally pay it at the same time as your GST. Provided you aren’t in a partnership or operating as a look-through company, you can use this method if you file GST returns monthly or every two months and your income tax liability for the previous year wasn’t more than $150,000.

Clyden Manikkam, our Client Relationship Manager, explains the GST Ratio method.

Further Resources for Paying Tax:

• Calculating Provisional Tax
• Our Provisional Tax Guide
• 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, Standard Uplift method, or Estimation method