Online content creators need to know about provisional tax, paying off overdue tax, payment methods, due dates and converting overseas currency to NZ dollars.
If you need detailed help or would prefer someone do your taxes for you, talk with a tax professional.
Provisional tax helps you manage your income tax. You pay it in instalments during the year instead of a lump sum at the end of the year.
You'll have to pay provisional tax if you had to pay more than:
- $5,000 tax at the end of the year from your last return for 2020 onwards
- $2,500 for years before your 2020 return.
Provisional tax is payable the following year after your tax return. For example, if your residual income tax from your 2020 return is more than $5,000, then you'll need to pay provisional tax during the 2021 tax year.
Paying off overdue tax
Please let us know if you cannot pay your tax on time or if you have outstanding tax. We have options available, and we're here to help. We will work with you to find a solution that works for both of us.
Some people are able to set up a plan to pay off their debt over time if they cannot afford to pay it in full. If that’s you, then you can set up a plan to pay off your debt. The plan can be for amounts that are due now or will be due later.
Ways you can pay
You can make payments to us:
- by internet banking
- debit or credit card
- in myIR
- both from New Zealand and from overseas.
Remember to include your IRD number as a reference.
Keep track of due dates throughout the year, it might help to add them to your calendar. If you cannot pay file or pay by the due date contact us as soon as possible to discuss your options.
Converting overseas currency to New Zealand dollars (NZD)
Income you receive from overseas including from overseas based platforms needs to be converted to New Zealand dollars on your income tax return. You can use the rates on our website.
Income is considered to have been received when you receive the payment. This is not always the same as when you earned it. Use the rate that applies to the date you received payment from the sponsor, platform or brand.
Here you can choose between either the mid-month or end of month rates. Use the rate that best fits your circumstances.
The formula for converting overseas currency to NZD is:
- overseas currency divided by exchange rate with cents rounded to 2 decimal places.
See the example below.
Using the USD end of month exchange rate for 30 April 2021 of 0.7162
USD$1000 received in April divided by 0.7162 = NZD$1396.65
Using the mid-month exchange rate for 15 April 2021 of 0.6791
USD$1000 received in April divided by 0.6791 = $1472.54