The next provisional tax instalment date is 28 March 2025
Provisional taxpayers with the below balance dates may have a tax instalment due on 28 March 2025 |
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Addressing Imputation Credit Account with tax pooling
If you find you have a debit Imputation Credit Account balance for the 31 March 2024 financial year, you may be able to resolve this by utilising the tax pool and purchase tax prior to filing the 2024 income tax return.
Contact the expert team at PwC Tax Pooling Solutions if you find yourself in this situation and we can provide guidance on the available options specific to you.
Approved Issuer Levy (AIL) update
The Approved Issuer Levy (AIL) presents a tax-efficient solution for New Zealand businesses making interest payments to non-resident lenders. Businesses can opt to pay a 2% levy on these interest payments rather than higher Non-Resident Withholding Tax (NRWT) rates.
Compliance with AIL requirements is essential as non-compliance can result in increased costs and potential penalties. A legislative bill is currently progressing through Parliament that aims to simplify compliance for past oversights.
The bill, now in its second reading, proposes major changes. If passed, it would remove the two-year limit on correcting past AIL registration for genuine errors and allow AIL to be included within the tax pooling framework. This gives businesses more flexibility to settle past tax debts with Inland Revenue.
Our team is ready to provide expert assistance and guidance for businesses anticipating a potential AIL reassessment. Please do not hesitate to contact us if you have any questions on this matter.
Reminder for 2024 tax pooling fund transfers
Taxpayers with the following balance dates will need to have all purchased and financed tax for the tax year ending 31 March 2024 transferred out of the tax pool to the Inland Revenue Department (IRD) by 31 March 2025:
Taxpayers with a 28 February balance date and without a valid extension of time
Taxpayers with a 31 December balance date and a valid extension of time
Other important dates for your calendar
For provisional taxpayers with balance dates from 31 March to 30 September for the 2024 income tax year, here are some key dates to remember:
The terminal tax date for the 2024 tax year is 7 April 2025 for those with a valid extension of time.
- For those without a valid extension of time, the last date to purchase tax for the 2024 tax year is 16 April 2025. This ensures that funds are transferred to the IRD by the tax pooling deadline on 23 April 2025.
For provisional taxpayers with 31 January balance date who have a valid extension of time, please also ensure that all purchased and financed tax for the 2024 income tax year is transferred from the tax pool to their IRD income tax accounts by 23 April 2025.
