2006 media releases
Tax discount for new businesses
24 May 2006
New business people are now able to get a tax discount for any voluntary payments they have made over the last financial year.
"The new discount is to encourage people to get a "head start" on their tax payments by making voluntary payments during a year when they're not obliged to pay provisional tax," says Naomi Ferguson, Deputy Commissioner Service Delivery.
"People who have just started in business, either self-employed or in a partnership, don't need to start paying provisional tax until their end-of-year tax exceeds $2,500. However, if they make voluntary payments before they need to start paying provisional tax they can claim the discount and get ahead with their payments."
Voluntary payments were introduced in the 2005-2006 tax year and this is the first year people will be able to claim the discount when they file their returns. The discount is 6.7% of the total voluntary payments made during the year or 105% of the end-of-year tax amount - whichever is smaller. The discount can be claimed either in the first year of business or a following income year as long as it is before provisional tax payments start therefore the biggest benefit will come from claiming it in the year with the highest end-of-year income tax.
Voluntary payments can be made at any time through automatic payments, direct credits, online banking, post (cheque only) or at any Westpac bank.
For more information on the tax discount for new businesses, or voluntary payments, visit our website or phone Inland Revenue (toll-free) on 0800 377 774.
Other media releases this year
- It's IR 3 time - for many of us
- Owner of chain of rest homes get 21-month prison term for million dollar tax evasion
- Family assistance payments to be made early
- Inland Revenue welcomes tough sentence on tax fraudster
- False identity charges lead to jail term for Christchurch woman
- PAYE evasion leads to jail term
- Family assistance payments to be made early
- Inland Revenue welcomes Govt3 award wins
- PAYE Subsidy available for employers
- One month left to seek penalty cancellations
- Christchurch painter jailed on tax charges
- Inland Revenue can offer help to weather-affected businesses
- Prison for Tauranga contractor on tax fraud charges
- Inland Revenue confirms stand on depreciation
- Family Assistance payments to be made early
- Tauranga contractor jailed for tax offences
- Inland Revenue revises rules on shortfall penalty application
- Inland Revenue Flood Support
- Family Assistance to be paid early
- Inland Revenue website wins People's Choice award
- Tax due date coming up on 7 February
- Family assistance payments to be made early
Corporate Affairs
Inland Revenue
To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.
P O Box 2198
Wellington 6140
New Zealand
Date published: 23 May 2006
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