Keeping track of key tax dates in New Zealand is essential for managing finances effectively and staying compliant with the Inland Revenue. Whether you’re self-employed, running a business, or managing personal tax obligations, understanding these deadlines can help you avoid unnecessary penalties. Here’s a guide to the most important tax dates in New Zealand.
1. End of Financial Year (31 March)
The New Zealand tax year runs from 1 April to 31 March. This is the most critical date in the tax calendar because it marks the end of the financial year. Many tax deadlines revolve around this date, so keeping it in mind is crucial for budgeting and planning purposes.
2. Income Tax Returns for Individuals (7 July)
For most taxpayers, income tax returns are due on 7 July following the end of the financial year. If you are a salary or wage earner, your tax is typically deducted by your employer through the PAYE (Pay As You Earn) system, and you may not need to file a return. However, if you earn income from other sources (like freelance work, investments, or rental properties), you’ll need to file an income tax return by this date.
3. Provisional Tax Due Dates
For businesses or individuals with fluctuating income, paying provisional tax is a way to spread income tax payments across the year rather than paying in one lump sum. These dates vary depending on your chosen method for paying provisional tax, either in two, three, or six installments. Standard dates for provisional tax payments are:
- 28 August
- 15 January
- 7 May
If you’re a new business or contractor, it’s essential to check whether provisional tax applies to you, as failure to pay on time can result in penalties.
4. GST Filing Dates
If you’re registered for Goods and Services Tax (GST), you must file regular GST returns. Your filing frequency—either monthly, two-monthly, or six-monthly—depends on your annual turnover.
- Monthly Filing: Due on the 28th of the following month.
- Two-Monthly Filing: Due on the 28th of the month following each two-month period.
- Six-Monthly Filing: Due on the 28th of the month following each six-month period.
Ensure you’re clear on your filing frequency to avoid missing these deadlines.
5. PAYE and KiwiSaver Filing Dates
Employers are responsible for filing PAYE (Pay As You Earn) on behalf of their employees, which includes contributions to KiwiSaver. The deadlines for PAYE depend on the amount of PAYE withheld:
- Small Employers (less than $500,000 PAYE annually): Monthly, due on the 20th of each month.
- Large Employers (more than $500,000 PAYE annually): Twice a month, due on the 5th and 20th of each month.
6. Fringe Benefit Tax (FBT) Payment Dates
Fringe Benefit Tax (FBT) applies if you provide certain benefits to employees, such as cars, low-interest loans, or subsidies. FBT payment frequencies vary based on how you choose to file:
- Quarterly Payments: Due on the 20th of the month following the end of the quarter (20 April, 20 July, 20 October, 20 January).
- Annual Payments: Due on 31 May if you choose to file annually.
7. Terminal Tax Payment (7 February or 7 April)
Terminal tax is the balance of income tax owed after considering provisional tax payments and withholding. The due date depends on whether you’re working with a tax agent:
- If You’re Using a Tax Agent: Due on 7 April.
- If You’re Not Using a Tax Agent: Due on 7 February.
If you’re unsure how much terminal tax you owe, your tax agent or Inland Revenue can provide the information needed to ensure you don’t miss the deadline.
8. Filing Extensions for Those Using Tax Agents
If you’re working with a registered tax agent, you may be eligible for an extension for some tax deadlines, allowing you to file by 31 March for the previous financial year. This is useful if your tax situation is complex or if you need additional time to gather documentation.
Tips for Staying Compliant
- Set Up Reminders: Use digital calendars or accounting software to remind you of upcoming deadlines.
- Automate Payments: If possible, set up automatic payments to avoid missing due dates.
- Work with a Tax Professional: Especially for businesses and contractors, a tax professional can offer guidance and ensure all filings are accurate and on time.
- Review Changes in Tax Laws: Tax laws can change, so staying updated on any changes to deadlines or obligations is essential.
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