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Nga kōwhiringa tāke takitaro Provisional tax options


There are 4 options available for working out your provisional tax.

Standard option

The standard option is useful if your income is steady or increases over the next year.

You can change from the standard option to the estimation option at any time. You cannot change to the ratio option or AIM during the same tax year.

Accounting income method

The accounting income method is useful if you have turnover of less than $5 million a year.

If you're using AIM you don't pay provisional tax until your business starts making a profit.

Estimation option

The estimation option is useful if you know your income will decrease over the next year.

Ratio option

The ratio option is useful if your income tends to vary or you have seasonal income. You need to let us know you want to use this option before the beginning of the income tax year.

Only provisional tax payers registered for GST who file one-monthly or two-monthly returns can use the ratio option.