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

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


After section RC 10(4), insert:

Some standard method taxpayers


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


In the formula,—


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


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


After section RC 10(4), insert:



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


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


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