Making payments to Inland Revenue: Electronic payments

Making electronic payments - it's convenient and easy

Payment details

It is important that you give us sufficient details to ensure your payment is successfully credited to the correct account, if you pay by any of the following electronic payment methods:

• online banking
• automatic payment
• direct credit.

The current banking technology only allows for one set of payment reference details to be included with an electronic payment. So, if you are paying more than one tax type, you must make separate payments to ensure we get enough information to correctly process them.

For employer deductions payments that include a combination of PAY, CSE, KSE, KSR, SLE, or SSC, you can make one payment using the DED tax type code.

Customers who file the GST and provisional tax return (GST 103) can make combined GST and provisional tax payments using the GAP tax type code.

Guidelines for electronic payments

Example of electronic payment instruction:

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See the example above of a correctly completed electronic payment instruction to pay $60 towards income tax for the period ending 31 March 2010.

Please provide the following information for all types of electronic payments.

• In the payee name and bank panels, enter "Inland Revenue" and our account number
  03 0049 0001100 - 27. These details stay the same every time.
• In the amount panel, enter the amount you want deducted from your bank account.
• In the particulars panel, enter the IRD number of the person or organisation the payment is for. Start from the left and leave the remaining boxes blank.
• In the payee code panel, enter the code for the correct tax type. Leave the next box blank, then enter the period end date this payment is for, not the date you are making the payment. The period must show the day, month and all four digits of the year as in the example above. If you are an employer, the correct period end date is printed on your employer monthly schedule or notice of assessment. Individual taxpayers will have the period end date printed on the return or notice of assessment.
• In the reference panel, leave this panel blank.

Note: You do not need to fill in the period end date for ARR, KSS or NCP.

 

Online banking

Most banks offer an online tax payment service which meets our requirements; ensuring sufficient payment reference details are included with your payment. Currently ANZ, ASB, BankDirect, Bank of New Zealand, Kiwibank, The National Bank, New Zealand Home Loans, Sovereign Home Loans, TSB Bank and Westpac offer this service, but you could ask your bank if they are developing a similar service.

If your bank does offer this service you will be prompted to enter or select the details relating to the payment. This includes:

• the IRD number of the person or organisation the payment is for
• the tax type the payment is for
• a period end date

This information will show on your statement, payment slip, or return.

If your bank does not offer this service you can pay using their standard on-line service but please make sure you supply the following details for us to credit your payment to your account.

• In the particulars panel, enter the IRD number of the person or organisation the payment is for.
• In the payee code panel, enter the code for the correct tax type. Leave the next box blank, then enter the period end date the payment is for, not the date you are making the payment. The period end date must show the day, month and all four digits of the year. If you are an employer, the correct period end date is printed on your employer monthly schedule or notice of assessment. Individual taxpayers will have the period end date printed on the return or notice of assessment.
• In the reference panel, leave this panel blank.

Here is an example of an income tax payment reference details for the period ending 31 March 2010.

Electronic payments to Inland Revenue should be made to bank account number 03  0049  0001100  27.

ASB customers only: As you are required by your bank to enter three digits in the account suffix number, the bank account number you use is: 03  0049  0001100  027.

Note: Although you can use online banking 24 hours a day, each bank has a different cut-off time for processing these payments. Payments made after these times will be carried over and processed the following business day. If you are making an online payment on the last day for payment, it is important that you check your bank's cut-off time to ensure your payment will not be late.

 

Automatic payment

Automatic payments are fixed amount payments made on a fixed frequency, for example fortnightly, for you by your bank. This suits those who are paying off an amount of outstanding tax. To make an automatic payment you will need to complete an Automatic payment authority (IR586) for each tax type you wish to pay electronically.

Note: If you wish to make automatic payments towards an amount of outstanding tax please contact us to get an automatic payment authority form or download it from our "Forms and guides" section. If you wish to make automatic payments towards a tax bill that is not yet due, you can get a copy of this form from our website or contact us directly.

 

Direct credit

Direct credits are one-off payments where a customer has authorised their bank to make a payment from their bank account to a payee's bank account.

Direct credits can also be made using both banking and payroll software packages. These services enable the payer (rather than their bank) to make a one-off payment from their bank account to a payee's bank account.

Customers who make regular tax payments such as GST and PAYE commonly use direct credits.

Note: If you use either a banking or payroll software package that only has two fields for payment detail information, please enter the IRD number in the first available field. In the second field, enter the relevant tax type code followed by the tax period this payment is for. Here is an example of an income tax payment reference details for the period ending 31 March 2010.

 

Telephone banking

Telephone banking should not be used for tax payments because current technology does not allow you to specify information for us to correctly credit a payment to your account.

 

Tax types codes

Code	Payment type	Description
AIL	Approved issuer levy	Payments for approved issuer levy - a payment calculated at the rate of 2% of the value of the registered security to a non-resident lender. Use the Approved issuer levy return (IR67A).
ARR	Tax under arrangement	Payments under prior approved arrangement with us.
CPR	Custodial parent recipient	Payments by custodial parents who have been overpaid and are repaying child support.
CSE	Child Support - employer	Payments for the total amount of child support deducted from employees/contractors. For more than one deduction, eg, PAYE and child support, use DED. Record deductions on the Employer deductions (IR345) form.
DED	Employer deductions - PAY, CSE, KSE, KSR, SLE, SSC	Payments with a combination of these tax types. Record on the Employer deductions (IR345) form.
DWT	RWT (resident withholding tax) on dividends	Payments for RWT on dividends. Use the Resident withholding tax on dividends (IR4K) form.
FAM	Working for families tax credits	Payments include family tax credit, in-work tax credit, minimum family tax credit and parental tax credit.
FBA	Fringe benefit annual	Payments for fringe benefit tax for filers of the Fringe benefit tax annual return (IR422) for the year ended 31 March.
FBI	Fringe benefit income year	Payments for fringe benefit tax for filers of the Fringe benefit tax income year return (IR421) (for companies with shareholder-employees).
FBT	Fringe benefit tax	Payments by employers who must file a Fringe benefit tax quarterly return (IR420) every quarter, or who choose to file quarterly.
GAP	GST and provisional tax (for GST and provisional tax return (GST103) filers only)	Payments for filers of the Goods and services tax (GST) and provisional tax return (GST103) who have elected to use the ratio option. Filers of the GST101 return, should use GST.
GMD	Gaming machine duty	Payments for gaming machine duty. Use the Gaming machine duty return (IR680).
GST	Goods and services tax	Payments for GST. Use the Goods and services tax (GST) return (GST101A).
ICA	Imputation credit account	Payments for companies who pay imputation credits. Use the Annual imputation return (IR4J).
IED	Intermediary employee deductions	For intermediaries (payroll providers) paying employee deductions.
INC	Income tax (including provisional tax)	Payments for income tax and provisional tax.
IPS	Interest PAYE (pay as you earn) - RWT (resident withholding tax) on interest	Payments for RWT when deducted from interest. Use the Resident withholding tax (RWT) on interest (IR15P) form. At the end of the year use the Resident withholding tax (RWT) on interest reconciliation statement (IR15S).
KSE	KiwiSaver employee deductions	Payments for total KiwiSaver contributions deducted from employees’ salary and wages. For more than one deduction, eg, PAYE and KiwiSaver, use DED. Record deductions on the Employer deductions (IR345) form.
KSR	KiwiSaver employer contributions	Payments for total KiwiSaver deductions contributed on behalf of employees. For more than one employer deduction, eg, PAYE and KiwiSaver, use DED. Record on the Employer deductions (IR345) form.
KSS	KiwiSaver member's account	Voluntary contributions to KiwiSaver account by employees.
MAC	Maori authority credit account	Payments of Maori authority credits. The annual MAC return is IR8J.
NCP	Child Support - non-custodial parent	Payments by non-custodial parents who are financially supporting their children by paying child support.
NRT	NWRT (formerly non-resident withholding tax)	Payments of non-resident withholding tax, ie dividends, interest and royalties a New Zealand resident pays to a non-resident. Use the Non-resident withholding tax (NRWT) (IR67P) form.
PAY	PAYE (pay as you earn)	Payments of the total amount of PAYE deducted from employees/contractors. For more than one employer deduction, eg, PAYE and student loan, use DED. Record the deductions on the Employer deductions (IR345) form.
PIE	Portfolio investment entities	For filing a Portfolio investment entity (PIE) periodic return (IR852) .
QCT	Qualifying company election tax	Payments of qualifying QCET. Use the Qualifying company tax (QCET) (IR4P) form.
REB	Tax credit (formerly rebate) payment claim	For repaying an overpaid tax credit payment.
RWT	Schedular payment (formerly resident withholding tax)	Payments of RWT on specified dividends. Use the Resident withholding tax on specified dividends/Maori authority distributions (IR17P) form.
SSC	Employer superannuation contribution tax (ESCT), (formerly specified superannuation contributions)	Payments of employer superannuation paid on behalf of employees/contractors. For more than one employer deduction, eg PAYE and ESCT deductions (formerly SSCWT) use DED. Record deductions on the Employer deductions (IR345) form.
SLE	Student loan repayments - employer	Student loan repayments that have been deducted from employees or contractors. For more than one employer deduction, eg PAYE and student loan, use DED. Record the deductions on the Employer deductions (IR345) form.
SLS	Student loan repayments - student	Repayments to a student loan.
WPE	Foreign dividend* - elected	For companies that have elected to maintain a dividend withholding payment account. Use the Foreign dividend withholding payment (FDWP) return (IR4F).
WPN	Foreign dividend** - non-elected	For companies that have not elected to maintain a dividend withholding payment account. Use the Foreign dividend withholding payment (FDWP) return (IR4F).

*formerly foreign dividend withholding - elected
**formerly foreign dividend withholding - non-elected

For payments with a combination of PAY, CSE, SLE, KSE, KSR or SSC, the code is DED (deductions) as shown on the Employer deductions (IR345)

For payments with a combination of GST and provisional tax the code is GAP (GST and provisional tax).

If you are paying only one type of deduction, please use the separate tax type from this list.

Other electronic payment options include automatic payments and direct credit payments (including banking and payroll software packages). Please refer to our Making payments (IR584) booklet for more information.

 

Date published: 04 Feb 2010

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