From April 2018, small businesses will be able to choose a new pay-as-you-earn option, rather than paying provisional tax in instalments several times a year.
Inland Revenue is introducing the Accounting Income Method (AIM) so your business can pay tax as you earn profit. Your accounting software will calculate how much tax to pay for each filing period — monthly or two-monthly.
AIM is optional — and only for businesses with an annual turnover of less than $5m. Talk to your Monteck Carter account manager about whether it’s the right choice for you. Other options for paying provisional tax remain in place.
For more information on AIM, visit the IRD website here.