What is the difference between provisional and terminal tax

If you have a 31 March balance date ie your tax year ends on 31 March and you use the standard or estimation options to calculate your provisional tax payments, your provisional tax due dates are:.

If you have a 31 March balance date and you use the ratio option to calculate your provisional tax payments, these are due on:. Make sure we receive your returns and payments on or before the due date. The Provisional Tax Changes March 24, Estimation method s RC7 : provisional taxpayers may estimate their RIT for an income year and pay their provisional tax based on the estimate.

An estimate can be revised at any time up to the final instalment date. Taxpayers will make six provisional tax payments of differing amounts depending on their taxable supplies during each two-month period. After that, taxpayers just need to multiply their total GST taxable supplies for their latest two monthly GST period by the ratio percentage calculated above. Terminal tax is the balance of income tax after deducting all available tax credits and after deducting any provisional tax p ayments.

The unpaid amount is subject to UOMI at a rate of 8. If you have any questions please contact your RightWay accountant, email info rightway. Back to home. COVID