Pay your provisional tax at the same time as your GST?

From the beginning of your 2008/2009 income year you are able to use another method to calculate and pay your provisional tax.  This new method isn’t available to everyone – for example, if you are trading as a partnership you cannot use this option.

Using this option you make your provisional tax payments at the same time as your GST payments – on the same form in fact.  IRD works out what your GST Ratio is and you then apply that to your two monthly turnover as per your GST return.

There are advantages and disadvantages to using this method. If you have any queries whatsoever, don’t hesitate to contact your wellington accountant.

 

 

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