A new way to calculate and pay provisional tax
From 1 April 2018
The accounting income method (AIM), which will be available to taxpayers with turnover of $5 million or less, will allow those who have IRD-approved accounting software to ce the impact of provisional tax for shareholder-employees.
Taxpayers who are forced to use the estimate method due to volatility or seasonality may find tax pooling a useful option to manage income tax payments, as they will be subjected to IRD interest.
Tax pooling would also provide businesses with cashflow constraints greater flexibility around when and how they pay their provisional tax payments.