What is Provisional tax?
It is a separate tax but a way to paying your income tax as you receive income through the year. If you residual income tax is more than $2,500, you’ll have to pay provisional tax for the following year.
There are 3 options that you can choose from-standard, estimation and ration.
Due dates for provisional tax
| Category | 1st Instalment | 2nd Instalment | 3rd Instalment | 4th Instalment | 5th Instalment | 6th Instalment |
|---|---|---|---|---|---|---|
| Not registered for GST | 28 August | 15 January | 7 May | |||
| GST-Registered-6 monthly filer of GST returns | 28 October | 7 May | ||||
| GST-Registered-one-or two monthly filers of GST Return | 28 August | 15 January | 7 May | |||
| GST-Registered and elected to use the ration option for provisional tax | 28 June | 28 August | 28 October | 15 January | 28 February | 7 May |
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