Provisional Tax:

Provisional tax is not a separate tax but a way of paying your income tax as the income is received through the year. You pay installments of income tax during the year, based on what you expect your tax bill to be.

The amount of provisional tax you pay is then deducted from your tax bill at the end of the year. If you had income tax of $3,230 or more to pay at the end of any tax year you may have to pay provisional tax for the following year.

You can either use the standard, estimation or ratio option to calculate your provisional tax.


For more information please refer to Provisional Tax on the IRD website.