Te whiriwhiri i te tāke tārewa mā te whakamahi i te kō whiringa aro whānui Work out provisional tax using the standard option

The method you use to calculate your provisional tax depends on what instalment you are working out and when you file your previous year’s return.

You need to determine what method to use before you can calculate your instalments. If you are unsure, find out

Standard option

Return filed after a weekend or public holiday

If the provisional tax date is on a weekend or public holiday and you file your previous year’s return on the next working day, it is treated as being filed on the provisional tax instalment date. 

Balance date

If you have a standard balance date of 31 March your 3 instalments will be due on 28 August, 15 January and 7 May. 

If you have a balance date other than 31 March, use our tax due date calculator to work out when your instalments will be due.

If you have filed your previous year’s return on or before your first provisional tax instalment date add the uplift amount to your residual income tax. This will result in your provisional tax being your previous year’s residual income tax plus 5%

Divide your residual income tax plus the additional 5% by 3.

If you're a 6-monthly GST filer, divide your residual income tax by 2. You'll pay 2 equal instalments when your GST returns are due.

If you file your previous year’s return after the first or second instalment, some of your instalments will be based on your RIT from 2 years ago plus 10%.

Previous return filed after 1 instalment

If your return is filed after the first and on or before the second instalment dates, use the following calculations.

• For your first instalment take your RIT from 2 years ago plus 10%. Divide this amount by 3.
• For your second instalment take your previous year’s RIT plus 5% and then times it by 2 (the number of payments remaining). Divide this amount by 3 and then subtract the amount you have paid for your first payment.
• For your final instalment take your previous year’s RIT plus 5% and subtract the amounts paid in the first and second instalments.

Previous return filed after two instalments

If your return is filed after the first and second instalment dates, use the following calculations.

• For your first and second instalments take your RIT from 2 years ago plus 10%. Divide this amount by 3. That will give you the amount of each instalment.
• For your final instalment take your previous year’s RIT plus 5% and subtract the amounts paid in the first and second instalments.

If your return is filed after all instalments, use the following calculations.

• For your first and second instalments take your RIT from 2 years ago plus 10%. Divide this amount by 3. That will give you the amount of each instalment.
• For your final instalment take what you expect your previous year’s RIT to be plus 5%. Subtract the amounts paid in the first and second instalments.

If your previous year’s RIT is different from expected, you will have paid more or less than needed.

Pay your instalments in full by the due dates. If the payments are late, you may get penalties and interest. If the provisional tax date is on a weekend or public holiday, payments made on the next working day are treated as being made on the provisional tax date.