We may charge late payment penalties on overdue amounts.
Late payment penalties include:
If you file your Employer monthly schedule (IR348) or Employment information schedule but don't pay the amount, we may charge non-payment penalties.
Initial late payment penalties are applied in two stages:
We may add a further 1% penalty every month the amount remains unpaid.
We don't charge late payment penalties on:
|We charge interest on amounts not paid by the due date, including penalties.|
We no longer charge the 1% monthly penalty on unpaid amounts for:
We'll still charge the initial 1% and 4% penalties.
We'll continue to charge the 1% monthly penalty on unpaid amounts before the dates above.
Late payment penalties start from the day after the payment due date. For a reassessment, a new due date will generally be set. There will be no late payment penalties on the newly assessed tax if it's paid by the new due date.
If it’s your first late payment in a two-year period, we may give you extra time before we charge late payment penalties. This is called a grace period.
We’ll notify you if you have a grace period and what the new due date for payment is. If you don't pay by this date then the late payment penalties are imposed from the original due date.
|We will charge interest from the original due date.|
If a Maori authority has a debit balance in its Māori authority credit account (MACA) at 31 March it will automatically incur a 10% penalty on that amount. The debit balance is referred to as further income tax due, and the penalty is a Māori authority distribution penalty tax.
Further income tax and Māori authority distribution penalty tax are due by 20 June following the end of the MACA year.
|If your organisation stops being a Māori authority and a debit balance exists, you must clear that debit no later than the last day on which the organisation is a Māori authority. If this amount isn’t paid by the due date, late payment penalties may apply.|