New Zealand businesses have more time to decide on their method for calculating provisional tax payments.
Because of the pandemic, the Inland Revenue Department delayed the deadline for choosing the goods and services tax ratio method, according to a Wednesday announcement.
- Taxpayers meeting criteria for using the GST ratio method normally must make the election before the start of their income year. The government is extending the deadline to Aug. 19 or the day before the start of a taxpayer’s 2021 income year, whichever is later.
- The ratio methodlets taxpayers match provisional tax payments with business cash flow. Payments under this option, useful for taxpayers with variable or seasonal income, are based on a percentage of GST-taxable supplies.
- Once notified of their ratio, businesses will have 10 working days to make a provisional tax payment, the government said. Penalties and interest will be remitted if payment is made within that time frame.