The next provisional tax instalment date is 28 August 2025
Provisional taxpayers with the below balance dates will generally have a tax instalment due on 28 August 2025 |
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As the next provisional tax instalment approaches, consider the advantages of depositing into the tax pool rather than paying this instalment to IRD directly:
- Flexibility: If your actual profit is lower than expected, you can reduce or withdraw excess deposits without penalty.
- Cashflow management: You have the option to finance tax payments, aligning them better with your business’ cash position.
- Cost savings: By accessing surplus tax from other taxpayers in the pool, you can reduce exposure to IRD’s high use-of-money interest rates.
- Peace of mind: Depositing into the pool ensures your tax obligations are met on time, while keeping your options open if circumstances change.
In short, tax pooling gives you greater control, cost efficiency, and flexibility than paying IRD directly. Alternatively, if you’d like to defer your payment of this instalment, reach out to us to discuss whether Tax Financing or an Easy Tax Instalment Plan could work for you.
An update to our T&Cs in preparation for myIR integration
We are preparing for a rollout of our next generation of services - integration with myIR; which will allow seamless support of all your tax pooling needs.
As a final onboarding step with IRD, this requires an update to our T&Cs to clarify the responsibility for tax-related record keeping and where data is stored in line with IRD's guidance on record keeping.
The addition to our T&Cs formalise our expectation that the primary obligation of record keeping is on the client/taxpayer which requires that you hold all relevant records in New Zealand for 7 years. PwC will still maintain records (in Microsoft azure data centres in Australia) in line with our retention periods required by our internal policies and law. We will make them available to you or IR on lawful request.
If you have any questions or comments about this update, please contact us at taxpooling@pwc.com.
The early payment discount rate for the 2026 income year is 6.30%.
Tax pooling use case: Early payment discount
If you are in your first year of business or have not been a provisional taxpayer before, you may be eligible to receive an early payment discount from IRD by paying your income tax before the end of the income year.
The early payment discount rate for the 2026 income year is 6.30% - calculated as 2% plus the use of money interest credit rate as at 31 March of the previous tax year. This means that if you have a March balance date for the 2026 income year, and you pay your tax obligation prior to 31 March 2026, you may be eligible to receive a discount of 6.30%.
IRD allows the use of tax pooling to purchase back-dated income tax to receive the early payment discount. If you think that you may be eligible, talk to your accountant or reach out to the TPS team.
Question and answer: Can I use tax pooling for tax types other than Income Tax?
We frequently receive inquiries about whether tax pooling can be applied to GST, RWT, or PAYE, and the answer is… it depends.
Tax pooling is primarily tailored for income tax purposes. However, there may be opportunities to use it for other tax types if a voluntary disclosure has been submitted or a reassessment has been filed.
In these cases, funds must be transferred from the tax pool to IRD within 60 days from the date of the voluntary disclosure or reassessment being accepted, so it’s important to reach out to our Tax Pooling Solutions team as early as possible.
In any instance where the IRD has imposed Use of Money Interest or Late Payment Penalties on a taxpayer's account, we encourage you to contact our team. We are here to explore potential solutions and assist you wherever possible.
Other important dates for your calendar
Taxpayers with a 30 April, 31 August, or 31 December balance date may have a provisional tax instalment due on 29 September 2025. Now is a great time to request a finance quote to defer your provisional tax payment and free up some working capital.
The Tax Pooling Solutions team will be out of office for a Volunteering Day on Friday 29 August 2025. For any urgent enquiries, please email jonathan.t.gray@pwc.com.
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Jonathan Gray