If your circumstances have changed due to COVID-19 (novel coronavirus), you may be able to make an estimate or re-estimate of provisional tax. We can also arrange early refunds if provisional tax has been overpaid.
Provisional tax threshold
The New Zealand Government has recently passed legislation to increase the provisional tax threshold from $2,500 to $5,000. This means any current provisional taxpayers with provisional tax payments of less than $5,000 will have until 7 February following the year they file to pay their tax bill. This is intended to lower compliance costs for smaller taxpayers and allow them to retain cash for longer. We expect that this will reduce the number of taxpayers paying provisional tax by around 95,000.
This is a permanent change that will take effect from the 2020-2021 income year. For most taxpayers, this will mean 1 April 2020.
If you would like to continue paying in instalments throughout the year, you can make a voluntary payment to us or put aside money in a bank account until your tax payment is due.
We will work to update this information on the rest of our website in the coming days.