Am I a provisional taxpayer?
And what happens when the due date falls on a weekend or public holiday?
You enter into the provisional tax regime when your residual income tax is more than $5000. In this regime you pay 2 or 3 installments throughout the year, depending if you are GST registered.
If a provisional tax payment due date happens to fall on a weekend or public holiday, the due date is then transferred to the next working day. For example, August the 28th is an installment date for some provisional taxpayers (depending on if they are on a 2 or 3 payment schedule), which falls on a Sunday this year, therefore the due date is now Monday 29th of August.
Please note- If your 2022 tax return is filed on or before this due date, the provisional tax calculation is estimated on 105% of your 2022 residual income tax. However if your 2022 return is not filed by the 29th August, your provisional tax payment will be calculated on 110% uplift of your 2021 residual income tax.
For any questions regarding provisional tax payments, please get in touch with our expert accounting team.