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Offices closed All Inland Revenue offices are currently closed to the public to help limit the spread of COVID-19.

COVID-19 - Level 2 If you've been affected by COVID-19, we may be able to help. Find out more

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. $2,500 before the 2020 return.

It's 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.

Provisional taxpayers often earn:

  • self-employed income
  • rental income
  • income earned as a contractor
  • income from a partnership
  • overseas income.

In light of COVID-19 the provisional tax threshold has been increased 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.

COVID-19 Provisional tax