New Bill to Revamp Provisional Tax System

August 9, 2016 New Zealand Taxation

Tax deductionsSmall business in New Zealand will soon have an easier time paying their Provisional Tax, if a new Bill is approved.

On Monday the Minister of Revenue Michael Woodhouse announced that new bill has been introduced to Parliament, detailing the earlier proposed updates to Provisional Tax payments.

The new bill details the new Accounting Income Method for calculation and payment of Provisional Tax by small and medium sized businesses.

Under the new system, small businesses using appropriate accounting software will be able to calculate their Provisional Tax obligations based on their realized incomes, instead of estimating their potential incomes for the year.

It is believed that the eased filing system will ease the administrative burdens for businesses, allowing owners to concentrate on operations instead of administrative and tax obligations.

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