If what you have paid in provisional tax through the year exceeds the tax owing at the end of the year, you have overpaid your tax. The excess will be refunded to you (unless you have other debts with Inland Revenue or you would like Inland Revenue to use it to pay another tax liability).
If the provisional tax payments you have made are not enough to cover your tax owing, the balance is called “terminal tax” and you must pay it by the terminal tax due date.
When you need to pay terminal tax is based on two things:
Most people have the standard balance date of 31 March. If you have the standard balance date, your terminal tax is due by:
The goal is to get your provisional tax to cover your income tax so you aren’t faced with a big terminal tax bill at the end of the year. Contact us to discuss how best this can be done.
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We provide solutions to enable the development of a Risk Management culture to enhance business performance, improve decision making and ensure your Business Plan doesn’t just gather dust.
