Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020

171 Section RC 10 amended (Calculating amount of instalment under standard and estimation methods)

(1)

After section RC 10(4), insert:

Some standard method taxpayers

(5)

A person who uses the standard method may, despite subsection (2), choose that the amount of their final instalment of provisional tax of a tax year is calculated using the following formula, if their expected RIT under subsection (6)(a) is $60,000 or more—

expected RIT − tax.

Definition of items in formula

(6)

In the formula,—

(a)

expected RIT is the person’s expectation of their residual income tax for the tax year:

(b)

tax is the amount of a person’s provisional tax liabilities for the tax year to date.

(2)

After section RC 10(4), insert:

Truncation

(7)

An instalment calculated under this section is truncated to whole dollars, for example $10.98 equals $10.

(3)

Subsection (1) applies for the 2019–20 and later income years.

(4)

Subsection (2) applies for the 2017–18 and later income years.