Paying provisional taxwith TMNZ
The provisional tax benefits of tax pooling.
Paying provisional tax with TMNZ
The provisional tax benefits of tax pooling.
Tax pooling has helped thousands of Kiwi business owners make the right provisional tax payments, at the right time.
Tax pooling has helped thousands of Kiwi business owners make the right provisional tax payments, at the right time.
Tax pooling is all about freedom and flexibility
Instead of making your provisional tax payments directly to Inland Revenue on a given date, you can pay into the tax pool (of an Inland Revenue-approved intermediary – i.e. us) whenever you like.
When your tax bill arrives, let us know and we’ll transfer the exact amount to Inland Revenue on your behalf. The second we do that, it’ll be considered “tax paid”.
It’s all about balance. Some businesses like to overpay their tax when they have the funds. Because of this, they’re actually helping cover businesses that need a little more flexibility with their tax payment arrangements. We like to think of it as business helping business.
Keep your cash flowing
When it’s time to settle your provisional tax, you can use funds from the tax pool.
And here’s where that balance we spoke about earlier comes into play…
If you’ve overpaid, brilliant. You’ve got another choice to make. Put that credit towards your next payment, sell it off (usually for much higher returns than Inland Revenue will offer), or have it refunded.
If you’ve underpaid, no problem. You can buy a little tax top up. And because that money has already been date stamped as paid on time, you’ll never see another late payment penalty. Not only that, but you can make significant savings on Inland Revenue interest.
Want to know more? Get in touch and we’ll talk you through it.
A partnership that pays
Inland Revenue approved the use of tax pooling in 2003.
Today, Inland Revenue manage the registration of tax pooling intermediaries, of which we were the first, and (still are) the largest.
You're good to go! Tax pooling has been approved for managing voluntary or normal provisional tax payments, reassessments of income tax, and increased obligations of other tax types due to tax audits or voluntary disclosures - like PAYE, GST, FBT, NRWT and Terminal Tax.
Paying provisional tax with TMNZ
The provisional tax benefits of tax pooling.
Tax pooling has helped thousands of Kiwi business owners make the right provisional tax payments, at the right time.
Tax pooling is all about freedom and flexibility
Instead of paying Inland Revenue directly on a given date, you can pay into the tax pool (of an Inland Revenue-approved intermediary – i.e. us) whenever you like.
When your tax bill arrives, let us know and we’ll transfer the exact amount to Inland Revenue on your behalf. The second we do that, it’ll be considered “tax paid”.
It’s all about balance. Some businesses like to overpay their tax when they have the funds. Because of this, they’re actually helping cover businesses that need a little more flexibility with their tax payment arrangements. We like to think of it as business helping business.
Keep your cash flowing
When it’s time to settle your provisional tax, you can use funds from the tax pool.
And here’s where that balance we spoke about earlier comes into play…
If you’ve overpaid, brilliant. You’ve got another choice to make. Put that credit towards your next payment, sell it off (usually for much higher returns than Inland Revenue will offer), or have it refunded.
If you’ve underpaid, no problem. You can buy a little tax top up. And because that money has already been date stamped as paid on time, you’ll never see another late payment penalty. Not only that, but the interest we charge is up to 30% lower than Inland Revenue’s.
Want to know more? Get in touch and we’ll talk you through it.
A partnership that pays
Inland Revenue approved the use of tax pooling in 2003. Since then they’ve had nothing but good things to say about the benefits this revolutionary system brings to both government and business at tax time.
Today, Inland Revenue manage the registration of tax pooling intermediaries, of which we were the first, and (still are) the largest.
You're good to go! Tax pooling has been approved for managing voluntary or normal provisional tax payments, reassessments of income tax, and increased obligations of other tax types due to tax audits or voluntary disclosures - like PAYE, GST, FBT, NRWT and Terminal Tax.
What is provisional tax?
Provisional tax refers to the instalments of income tax businesses, sole traders, and self-employed individuals needing to pay to the Inland Revenue (IR) throughout the financial year.
Do I need to pay provisional tax?
You are required to pay provisional tax if you earn income that doesn’t have tax deducted at the source — self-employed individuals, sole traders, and businesses.
If your residual income tax (RIT) for the previous year was more than $5000, you will be required to pay provisional tax for the current financial year. RIT is calculated by subtracting tax credits — like PAYE, Resident Withholding Tax, or imputation credits — from your taxable income.
You may have to pay provisional tax if you earn income where tax hasn’t been deducted before you receive it.
When do I pay?
What are New Zealand’s provisional tax due dates?
Generally, you will pay provisional tax three times across three set dates, rather than one lump sum at the end of the financial year.
For example, if you have a 31 March balance date (your end of financial year), your three provisional tax instalments are usually due on 28 August, 15 January, and 7 May.
If your balance date isn’t 31 March, or you want to see your whole tax year at a glance, check out our provisional tax calendar:
And if I pay late? Or miss my payment date?
Missing a payment means IR will charge you both late payment penalties (LPP) and use of money interest (UOMI), impacting your cashflow and increasing your tax bill. The penalty is calculated as a percentage of the outstanding tax liability and accrues each day until paid.
If this is you, TMNZ can help to wipe late payment penalties and reduce your interest cost if you’ve underpaid or missed your provisional tax. Contact your accountant or tax agent and tell them you want to pay using TMNZ tax pooling. Or get in touch to learn more about how we can help.
When do I pay?
What are New Zealand’s provisional tax due dates?
Generally, you will pay provisional tax three times across three set dates, rather than one lump sum come end of financial year.
For example, if you have a 31 March balance date (your end of financial year), your three provisional tax instalments are usually due on 28 August, 15 January, and 7 May.
If your balance date isn’t 31 March, or you want to see your whole tax year at a glance, check out our provisional tax calendar:
And if I pay late? Or miss my payment date?
Missing a payment means IR will charge you both late payment penalties (LPP) and use of money interest (UOMI), impacting your cashflow and increasing your tax bill. The penalty is calculated as a percentage of the outstanding tax liability and accrues each day until paid.
If this is you, TMNZ can help to wipe late payment penalties and reduce your interest cost if you’ve underpaid or missed your provisional tax. Contact your accountant or tax agent and tell them you want to pay using TMNZ tax pooling. Or get in touch to learn more about how we can help.
Ever wish you could choose your own tax dates?
Actually, you can! With TMNZ tax pooling, you can choose to either:
Pay in instalments with Flexitax
Flexitax can help you smooth out your payments with options to pay provisional tax in lump sums or instalments up to 75 days after Terminal Tax. Meaning you can keep your cashflow where you need it most.
Choose when you’ll pay with Tax Finance
Tax Finance gives you the freedom to pay tax when you know your business will have the cashflow, essentially delaying your payment date. Simply choose any date up to 75 days after your terminal tax date and rest easy knowing you have the finance when you need it without incurring late payment penalties or IR interest.
Ever wish you could choose your own tax dates?
Actually, you can! With TMNZ tax pooling, you can choose to either:
Pay in instalments with Flexitax
Flexitax can help you smooth out your payments with options to pay provisional tax in lump sums or instalments up to 75 days after Terminal Tax. Meaning you can keep your cashflow where you need it most.
Choose when you’ll pay with Tax Finance
Tax Finance gives you the freedom to pay tax when you know your business will have the cashflow, essentially delaying your payment date. Simply choose any date up to 75 days after your terminal tax date and rest easy knowing you have the finance when you need it without incurring late payment penalties or IR interest.
Contact Us
We make provisional tax easy.
With the largest support team in New Zealand, we’re here to help you.