Cashflow management: 7 May provisional tax payment options

We would like to recommend an IRD-approved service those who are due to pay provisional tax on 7 May might find useful – especially if cashflow is tight after settling terminal tax.

 

Tax Management NZ (TMNZ) is a payment intermediary that gives you greater flexibility around how and when you make your provisional tax payments, while eliminating IRD late payment penalties and reducing interest costs.

 

Below we outline how they can help you manage cashflow and pay your provisional tax obligations.

 

Pay 7 May provisional tax in instalments

If you would rather pay your 7 May provisional tax as you go, TMNZ provides a way for you to pay via instalments.

 

There are no set instalment amounts. You can pay what you can, when you can for up to 75 days past your terminal tax date.

 

Paying this way reduces IRD interest costs by up to 30 percent and eliminates late payment penalties.

 

TMNZ interest is recalculated on the core tax remaining after each payment you make.

 

Defer payment of 7 May provisional to a later date

You also have the option through TMNZ of deferring full payment of 7 May provisional tax to a time in the future that suits you, without incurring IRD interest and late payment penalties.

 

The upfront finance fee is much cheaper than most other traditional forms of finance. Approval is guaranteed and the fee tax deductible.

 

You can defer payment of 7 May provisional tax for up to 12 months.

 

Please contact us to discuss how TMNZ can help you manage cashflow and provisional tax payments.

 

 

 

 

 

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