Say goodbye to tax bill shock and have peace-of-mind knowing your income tax is being taken care of by SBA
SBA can help work out your provisional tax.
Whether you need a standard, estimation or ratio option we’ll help you spread the load to avoid a huge tax bill at the end of the year by keeping a close eye on your cashflow.
So what is Provisional Tax?
It is a convenient way of paying your income tax in instalments (in advance) throughout the year. (IR 289)
You need to pay provisional tax for the following year if:
- during the year, you have earned income which has either:
- not been taxed, or
- has not had enough tax deducted from it
- and your residual income tax (RIT) to pay is more than $2,500
Is this your first year of business?
If your answer is yes – then you are not required to pay any provisional tax if your residual income tax (RIT) in the previous year was $2,500 or less.
SBA will keep you up-to-date and ensure you meet your tax obligations.
If you need help in understanding this or any other tax topic and how it relates to your business, please feel free to contact your nearest SBA branch.
If you use the standard or estimation options to calculate your provisional tax payments, your provisional tax due dates are:
|If not registered for GST.||I’m registered for GST and pay monthly or bi-monthly.||I’m registered for GST and pay every 6 months.|
|First instalment||28 August||28 August||28 October|
|Second instalment||15 January||15 January||7 May|
|Third instalment||7 May||7 May|