The next provisional tax instalment dates are 15 January 2025 and 28 January 2025
Provisional taxpayers with the below balance dates may have a tax instalment due on 15 January 2025: |
Provisional taxpayers with the below balance dates may have a tax instalment due on 28 January 2025: |
|
|
As the provisional tax instalment period approaches, tax pooling offers flexible and competitive options to meet your needs:
- Deposit option: Earn interest on any overpaid amount at this instalment by swapping to a later tax date.
- Finance option: Enjoy a streamlined process with no paperwork and rates lower than a residential mortgage, simplifying your tax payments.
- EasyTax instalment plan: Benefit from a fixed rate and fixed costs, giving you predictable and manageable tax expenses.
For more details or to discuss these options, please get in touch with our team.
Transfer out due dates
Taxpayers with a 30 November balance date (without Extension of Time) will need to have all purchased and financed tax transferred out of the tax pool and into all taxpayer IRD income tax accounts by 23 December 2024 for the 2024 tax year.
Taxpayers with a 31 December balance date for 2024 tax year will need to have all purchased and financed tax out of the pool by the following dates:
Without Extension of Time |
With Extension of Time |
Before 21 January 2025 |
Before 31 March 2025 |
Check out the "Tax Dates Calendar" in the "Tools" tab of the Tax Pooling Solutions system to see when provisional and terminal taxes are due for different balance dates in the current open tax years.
Get in touch with the Tax Pooling Solutions team if you require any further purchases or transfers.
Dealing with old surplus tax sitting in the pool
If you have an upcoming provisional tax date and old surplus tax sitting in the pool, a sale and re-deposit is likely the best option. This differs from a tax swap forward in the following ways:
Flexibility with upcoming provisional tax dates - If your required provisional tax date is upcoming, any funds in the pool—whether they are owned funds or purchased tax credits—can be sold, and the settlement date can be aligned to the effective date required for your upcoming provisional tax payment. You may also earn interest on top of the tax amount sold.
Conversion to owned funds - The redeposited funds become owned funds, which can be used to settle liabilities of any tax type allowed under s. RP 17B(14) of the Income Tax Act 2007, without needing the Commissioner’s approval or a re-assessment letter. Any interest received as part of the sale and re-deposit will also become owned funds.
Differences with tax swap forward - A tax swap forward can achieve a similar outcome for dates that have already passed. However, note that these funds will then become purchased funds. If they are not transferred directly to Inland Revenue based on the actual liability, the risk is that they remain in the pool and cannot be used for any other tax type liabilities that may arise in the future. A tax swap should generally only be performed once amounts are certain.
Effectiveness for safe harbour - Sale and re-deposits can be particularly effective for those in safe harbour where a significant amount of tax may not be due until the terminal tax date. A sale can be entered to settle closer to the time.
A sale and re-deposit is effective for an upcoming provisional tax date when you have surplus tax from previous periods in the pool that you wish to utilise for current and future tax years. Once redeposited, the funds will become owned funds, which may be useful to settle other liabilities as they arise, not just income tax. Additionally, you may receive an interest amount on top of the amount sold.
If you would like to sell and re-deposit an old tax sitting in the pool, get in touch with us.
Wishing you a joyful holiday and a happy new year
As the year comes to a close, we would like to take a moment to thank you for your trust and partnership. We are truly grateful for the opportunity to work with you.
In this holiday season, we wish you joy, peace and quality time with your loved ones. We are excited about the opportunities that the new year holds and look forward to continuing our collaboration with you.
The Tax Pooling Solutions team is taking a break over the holiday period. We will be out of the office from Monday 23 December 2024 and we will be back on Friday 10 January 2024.
