Some customers no longer need to estimate their final provisional tax instalment

13 June 2023

Provisional tax customers using the standard option no longer need to change to the estimation option to pay a lower amount at their final instalment date if:

they expect to have Residual Income Tax (RIT) less than what was assessed using the standard option

their RIT will be more than $60,000

they have paid all previous provisional tax instalments for the year.

If you have clients with an expected RIT less than what was assessed for the year and choose to pay a lower amount, please send us a message in myIR so we can update their account. This will stop the sending of letters requesting repayment as well as credits being transferred to the final provisional tax instalment.

Information about this change is in the Tax Information Bulletin, Volume 32, Number 4, May 2020 (starting on page 53).

TIB - May 2020

Some customers no longer need to estimate their final provisional tax instalment

Roles