• Tax Stats

Tax Statistics 2023/2024

A guide to key New Zealand tax statistics and facts.

ACC Levies


ACC employer levies are determined based on the risk of accident in a particular industry.

ACC employee levy details for the 2023/24 tax year : 

Maximum Liable Earnings  $139,384 (aged 18 or over)

Earners Levy (incl. GST)  $1.53 per $100 earnings (aged 18 or over)

Depreciation Allowances


Certain assets can be depreciated for income tax purposes.

Examples: Diminishing Value Method Rate (DV)
Vehicle 30%
Computer 50%
Desk 13%
Building 0% (2% for non-residential buildings from 2020/21 income year)


Depreciation deductions ceased to be available from the 2011/12 income year for buildings with a useful life of 50 years or more, but are available again just for non-residential buildings from the 2020/21 income year onwards. A residential building is defined as being :

  1. a dwelling (this is also a defined term, and includes owner-occupied houses and apartments, and houses and apartments subject to residential tenancies)
  2. and includes any building intended to ordinarily provide accommodation for periods of less than 28 days at a time, if the building (together with any other buildings on the same land) has less than 4 units for separate accommodation

Depreciation can generally be calculated using either the straight line method or the diminishing value method.

A taxpayer can elect not to depreciate an asset.

Assets can be added to a “pool” and depreciated as though just one asset. Each asset must have a cost or tax value of less than $5,000, and the diminishing value method must be used.


Low value assets

An asset purchase with a total cost that doesn’t exceed a certain threshold can be written off immediately. The thresholds are :

  • for assets purchased before 17 March 2020 : $500
  • for assets purchased on or after 17 March 2020 and before 17 March 2021: $5,000
  • for assets purchased on or after 17 March 2021 : $1,000

The threshold amounts are GST exclusive if the taxpayer is GST-registered.

However, there are two scenarios where an immediate write-off is not permitted :

  • if the low-value item becomes part of any other property that is depreciable property, or is an improvement/upgrade of that property
  • if more than one low-value asset is purchased from the same supplier at the same time, and if those assets have the same depreciation rate and the total cost exceeds the relevant threshold


A tax credit is available on qualifying donations not exceeding the taxpayer’s taxable income for the year:
Donation tax credit minimum $5
Donation tax credit 1/3 of the qualifying donations


Companies (other than Look-Through Companies)
Qualifying donations are tax-deductible, but only to the extent that the donations do not exceed the company’s net income for the year.

Māori Authorities (as defined for income tax purposes)
Qualifying donations, plus donations made to Māori associations (as defined in the Māori Community Development Act 1962), are tax-deductible but only to the extent that the donations do not exceed the entity’s net income for the year.

Employee Accommodation & Allowances


New rules applied from 1 April 2015. These rules clarify the tax treatment of employer-provided accommodation, accommodation payments and other allowances or payments made by employers to cover employee expenditure. Please contact your BDO tax adviser for further information.

Employer’s Superannuation Contribution Tax (ESCT)


ESCT is deducted from an employer’s superannuation contributions. The ESCT rate is based on the total of the employer contributions and the employee’s salaries/wages (for the previous year if employed for all of the previous year):

Threshold Amount 2022/23 + 2023/24 Tax Years ESCT Rate
$1 - $16,800 10.5%
$16,801 – $57,600 17.5% 
$57,601 - $84,000 30% 
$84,001 - $216,000 33% 
Over $216,000 39%

Alternatively, the employer contributions can be taxed as salary and wages under the PAYE rules if the employee agrees

Entertainment Deductions


Entertainment expenditure is limited to a 50% deduction in certain scenarios:
Venue off-premises e.g. corporate box, holiday accommodation, boat
Food/drink off-premises e.g. social event, business lunch
Food/drink on-premises e.g. party, or in area not open to all employees


A full 100% deduction is allowed for: (this is not a full exemption listing)
Food/drink on-premises e.g. subsidised staff cafeteria open to all staff
Food/drink - business trip unless an existing or potential business contact is a guest, or unless the event is a celebration meal, a party, or other similar social function
Entertainment outside NZ  
Promotional samples  


If an employee enjoys the benefit of the entertainment expenditure outside of their employment duties, or can choose when to receive or use the benefit, the FBT rules might apply instead of the 50% deduction rule.

When a deduction for an entertainment expense is limited to 50%, a GST adjustment is may also be required.

Fair Dividend Rate (FDR)


The FDR method of calculating taxable income applies to share/equity investments of less than 10% in most overseas companies if the holder is subject to the Foreign Investment Fund (FIF) regime. If the FDR method is used for an investment, the taxpayer is not taxed on the dividend income or the increase in the value of the investment. The FDR method can also be used for some investments where the taxpayer’s ownership percentage is between 10% and 50%.

Individuals and most trusts can opt to be taxed at the lesser of:
5% of the opening value of their share portfolio*
(as at 1 April each year for standard balance date taxpayers)

or, their actual return calculated under one of the other FIF calculation methods (normally the Comparative Value method, but losses cannot be claimed).

Companies and other non-individuals use:
5% of the opening value of their share portfolio*.

*Quick sale adjustments must be made when a FIF has been bought and sold in the same income year.

There are certain types of investment for which the FDR method is not allowed to be used.

The FIF rules do not apply to most shareholdings in companies which are tax-resident in Australia and listed on an ASX index.

For individuals, the FIF rules generally only apply if the total cost (as defined) of the individual’s FIF interests is more than $50,000. This threshold exemption also applies to a very limited range of trusts. A taxpayer can voluntarily opt into the FIF regime if they are below the threshold (special rules apply).

Fringe Benefit Tax (FBT)


FBT is payable on most fringe benefits provided by an employer
Up to 31 March 2021 49.25%
From 1 April 2021 63.93%

Alternative calculation methods are available that can reduce the overall FBT cost in some scenarios.

FBT Value on Low or Interest-Free Loans:

Benchmark Interest Rate (interest rate is reviewed quarterly)

From 1 July 2022 to 31 December 2022 4.78%
From 1 January 2023 6.71%
FBT Value of Motor Vehicles (owned or leased):
Either 5% per quarter of the cost of the vehicle (incl. GST)
Or 9% per quarter of the tax value of the vehicle (incl. GST) – the minimum tax value is $8,333

Special valuation rules can apply if the vehicle was acquired at no cost, or if the owner or an “associated person” owned it at any stage during the 2-year period prior to the date of acquisition.

FBT Threshold for Annual Return Filing (instead of quarterly):

Total of annual PAYE and employer superannuation contribution tax​:
2023 tax year $1,000,000 or less
2024 tax year $1,000,000 or less


FBT Exemption Thresholds for “Unclassified Benefits”:

The value of minor fringe benefits (such as chocolates and flowers) that can be provided to employees without attracting FBT is $300 per quarter per employee, and $22,500 per year per employer.

Gift Duty


Gift duty was abolished from 1 October 2011.

Goods & Services Tax (GST)


On supplies in NZ (including goods/services imported into NZ):
From 1 October 2010 15%


Except for zero-rated supplies, including:
Exported goods or services (conditions apply)  0%
Duty-free goods 0%
Sale of taxable activities as a going concern 0%
Sale of land to GST-registered purchasers (conditions apply) 0%
International transport 0%
Some business-to-business financial services  0%


Exempt supplies:
Financial services (except some business-to-business) N/A
Domestic rental accommodation N/A
Salaries / wages N/A


GST return accounting basis:

The Invoice Basis method is the default method for accounting for GST. However, Inland Revenue can approve the use of either the Payments Basis method or the Hybrid Basis method, subject to special rules (see below). The Hybrid Basis method uses the Invoice Basis method for sales and the Payments Basis method for expenses.

GST return periods:

Returns generally need to be filed 2-monthly. However, monthly or 6-monthly returns can be filed, subject to special rules (see below).

GST return and payment due dates:

The due date for GST returns and payments is the 28th of the month following the end of the taxable period, except for the following periods:

  • period ending on 30 November - the due date is 15 January
  • period ending on 31 March - the due date is 7 May


Special rules:

If the total of the taxable supplies (e.g. sales of goods and/or services) in a 12-month period exceeds:
$60,000 Compulsory GST registration (otherwise voluntary)
$500,000 Cannot use 6-monthly periods
$2,000,000 Must use the Invoice Basis method, unless a non-profit body or non-resident or Inland Revenue agrees to the use of the Payments Basis method
$24,000,000 Must use monthly periods

Income Tax Return Due Dates


Balance Date Income Tax Return Due Dates​
If taxpayer is “linked” to a tax agent * -
31 March the following 31 March
From 1 Apr to 30 Sep 31 March after the end of the income year
From 1 Oct to 30 Mar 31 March after the end of the next income year
If taxpayer is not “linked” to a tax agent -
From 1 Apr to 30 Sep 7th day of the 4th month after the end of the income year
From 1 Oct to 31 Mar 7 July after the end of the income year
*Under “extension of time” arrangements. Taxpayers failing to file returns by the due date may lose their extension of time, resulting in earlier return and terminal tax payment dates for subsequent income years.

Income Tax, RWT and NRWT

Income Tax:​
Taxable Income : 2022/23 + 2023/24 Tax Years Tax Rate
$1 - $14,000 10.5%
$14,001 - $48,000 17.5%
$48,001 - $70,000 30%
$70,001 - $180,000 33%
Over $180,000 39%


Companies (other than LTCs): 28%
Complying Trusts:
Trustees 33%
Beneficiaries Individual rates apply (see above)
- except for minors 33%
For this rule, a “minor” is a NZ tax-resident who is less than 16 years of age on the balance date of the trust; this rule usually only applies if a relative or guardian (or associate of these) has made a settlement to the trust at any time, and the beneficiary income amount is greater than $1,000.
Māori Authorities: 17.5%


Resident Withholding Tax (RWT):
Dividends: 33%

Dividends paid by a QC, a LTC, and dividends within the same company group (≥ 66% common shareholding) are exempt from RWT.

A fully-imputed dividend paid to another company (other than an LTC) is exempt from RWT if the payer chooses that option.

Dividend RWT is payable to the IRD by the 20th of the following month.
Individuals 10.5%, 17.5%, 30%, 33%, 39%
Companies 28%, 33% or 39%

The rate depends on certain criteria and whether a rate election has been made. The 'non-declaration' rate is 45% if the recipient has not supplied an IRD number. If a number has been supplied but a rate has not been specified, the default rate is 33% if the recipient is an individual or a trust, and 28% if the recipient is a company.

Interest paid within the same company group (≥ 66% common shareholding) is exempt from RWT.


Interest RWT payment dates:

At least $500 per month 20th of the following month
Less than $500 per month 1 April to 30 September - due 20 October
1 October to 31 March - due 20 April

For a 6-monthly filer, if interest RWT deductions exceed $500 per month for a 2-month period, the RWT is payable to the IRD by the 20th of the following month.


Non-Resident Withholding Tax (NRWT):
Interest 15%*
- fully imputed 15% (0% in certain circumstances)
- not fully imputed 30%
Royalties 15%
*0% (in relation to some corporate bonds), or 2% if loan is subject to approved issuer levy

Where a double tax treaty exists, the rate of non-resident withholding tax may be reduced. A company paying an imputed dividend and supplementary dividend to a foreign shareholder may be entitled to claim a foreign investor tax credit.


NRWT payment dates:

$500 or more per year 20th of the following month
Less than $500 per year 1 April to 30 September - due 20 October
1 October to 31 March - due 20 April

For a 6-monthly filer, if NRWT deductions reach $500 during a tax year, the NRWT is payable to the IRD by the 20th of the following month. Monthly payments are then required for the remainder of the year.


RWT & NRWT return reporting requirements:

There are special reporting rules for payers of “investment income”. In some cases, income needs to be reported to the IRD by the payer even if no tax needed to be withheld from the payment.

Income Tax Payment Due Dates


  Provisional tax instalments Terminal tax
Month of balance date 1st 2nd 3rd  
October 28 Mar 28 Jul 28 Nov 7 Nov
November 7 May 28 Aug 15 Jan 7 Dec
December 28 May 28 Sep 28 Jan 15 Jan
January 28 Jun 28 Oct 28 Feb 7 Feb
February 28 Jul 28 Nov 28 Mar 7 Mar
March 28 Aug 15 Jan 7 May 7 Apr
April 28 Sep 28 Jan 28 May 7 Apr
May 28 Oct 28 Feb 28 Jun 7 Apr
June 28 Nov 28 Mar 28 Jul 7 Apr
July 15 Jan 7 May 28 Aug 7 Apr
August 28 Jan 28 May 28 Sep 7 Apr
September 28 Feb 28 Jun 28 Oct 7 Apr
The terminal tax date assumes that the taxpayer is linked to a tax agent



New employees Automatically enrolled, unless they opt out
Existing employees Can elect to join
Self-employed Can voluntarily join
Not employed Can voluntarily join


Employee contributions Minimum 3% of gross earnings
Member tax credit Matches 50 cents for every dollar of contribution paid into scheme (except if the member is older than 65).
Maximum tax credit $521.43 per year (nil if the member is older than 65).


Employer contributions At least 3% of gross earnings, less ESCT (see below)
Employer tax credit None

Employers deduct the employee’s contribution from their earnings, add their employer contribution, and pass this on via the IRD to an approved scheme provider for investment on the employee’s behalf.

Effective from 1 July 2019, people over 65 can now join a KiwiSaver scheme, but it is voluntary for employers to contribute for employees who are 65 or older.

See also the Employer’s Superannuation Contribution Tax (ESCT) section.

Mixed-Use Assets


A special tax regime deals with mixed-use assets, but only for specific types of assets which are used partly for earning income and partly for private use, and for which there is a period of non-use during the year (generally at least 62 days).

Application dates for land and improvements (including buildings):

Income tax returns

2014/15 income year

GST returns

17 July 2014

Application dates for boats & aircraft:

Income tax returns

2015/16 income year

GST returns

1 April 2015

Key points about the new regime:

  • There are special definitions and exceptions
  • From 1 October 2021, deductions for interest expenditure on accommodation could be phased out or denied altogether (see also the “Residential Property Interest Expenditure” section)
  • Expenditure deductions are subject to special apportionment rules
  • These rules can take precedence over the entertainment expenditure rules, the FBT rules, and the residential property ring-fencing rules
  • A net loss for an asset might be quarantined until there is net income from the same asset
  • A taxpayer can possibly opt out of this regime, but no expenditure deductions would be allowed

PAYE on Salaries & Wages


Deductions from Due date
1st to 15th of month 20th the same month.
16th to last day of month 5th of the following month, except for the 2nd December payment which has a due date of 15 January


Concession for small employers:

If the total PAYE (including ESCT) was less than $500,000 in previous year, there is only one payment due by the 20th of the following month (but an employer can choose to pay more often).

New employers:

A new employer can apply the small employer concession. However, if the total PAYE (including ESCT) passes the $500,000 threshold during the first year of employing, the employer needs to change to two payments per month (as per the above table).

Other tax types:

Employee ACC Earner Premiums, Student Loan repayments, Kiwisaver deductions, Kiwisaver employer contributions and Child Support deductions are all payable in the same manner.

PAYE on Schedular Payments


PAYE is a tax which is deducted at source from salary and wage payments. However, other types of payments for services might also need to have tax deducted at source. These payments would be for work done by non-employees - e.g. company directors, committee members, contractors, sales agents, entertainers, sportspeople.

If a particular activity is mentioned in Schedule 4 of the income tax legislation, a payment in relation to that activity could be a “schedular payment” which will need a special tax deduction.

There are some exemptions from the schedular payment rules:

  • a payment for services provided by a public authority, a local authority, a Maori authority
  • a payment made to a company, if the company is not one of the following : a non-resident contractor, a non-resident entertainer, a company involved in a “labour-hire arrangement” (see below), an agricultural, horticultural, or viticultural company
  • a payment covered by an exemption certificate (a certificate is not allowed for some taxpayers, including taxpayers involved in a “labour-hire arrangement”)
  • a payment for services provided by certain non-resident contractors

New schedular payment rules from 1 April 2017

Labour-hire arrangements are now subject to the schedular payment rules. These arrangements are generally where:

  • one of the payer’s main activities is the business of arranging for a person (or persons) to perform work or services directly for clients of the payer, and
  • the payment is made under an arrangement where some or all the work is done by the payee directly for a client of the payer, or directly for a client of another person, and
  • the payer and payee are not “associated persons” (a special definition applies), although the payer can choose to deduct tax from a payment to an associated person

Voluntary schedular payments:

  • if a taxpayer’s activity is not otherwise subject to the schedular payment rules, they can now elect into the rules
  • this election can also be used by a company to whom payments would otherwise be exempt from the rules

Withholding rate elections:

  • a taxpayer who is subject to the schedular payment rules (other than a non-resident entertainer) is now able to elect their own withholding rate, as long as it is not less than the relevant minimum rate
  • minimum withholding rates : 15% if the payee is either a non-resident or the holder of a temporary entry class visa as defined in section 4 of the Immigration Act 2009; 10% in all other cases
  • in order to use a rate which is less than the minimum rate, or to have a zero rate when a certificate of exemption is not allowed, a taxpayer can apply to Inland Revenue for a special tax code certificate (also known as a tailored tax code certificate)

Provisional Tax


Taxpayers who have a year-end “residual income tax” (RIT) liability exceeding $5,000 are generally required to pay instalments of provisional tax. Provisional tax payment dates are aligned with GST payment dates, depending on the GST status and the method used. Most taxpayers pay provisional tax in three instalments, with a payment cycle of five, nine and thirteen months after the start of the income year (see also the Income Tax Payment Due Dates section). However, taxpayers who file six-monthly GST returns pay their provisional tax in two instalments, with a payment cycle of seven and thirteen months after the start of the income year.

Taxpayers can use the tax pooling system to manage their provisional tax payments. Refer to the Tax Pooling section for more details.

Standard method calculations for the 2023 & 2024 tax years:

2022/23 tax year
  2022 tax return filed 2022 tax return not filed
Companies/PIEs 105% 2022 RIT 110% 2021 RIT
Trusts & Estates 105% 2022 RIT 110% 2021 RIT
Individuals 105% 2022 RIT 110% 2021 RIT
2023/24 tax year
  2023 tax return filed 2023 tax return not filed
Companies/PIEs 105% 2023 RIT 110% 2022 RIT
Trusts & Estates 105% 2023 RIT 110% 2022 RIT
Individuals 105% 2023 RIT 110% 2022 RIT

Final instalment calculation: if a taxpayer expects their RIT for the current tax year to be $60,000 or more, and has used the standard method for all of the instalments to date, their final instalment amount can be based on the expected RIT less the total of the earlier instalment amounts – they do not need to use the estimation method just for their final instalment.

Estimation method

A taxpayer can estimate or re-estimate their provisional tax up until the last instalment date.

GST ratio method

If a taxpayer is eligible for this method, they base their provisional tax payments on a percentage of the GST taxable supplies, and there are six instalments per year.

Accounting income method (AIM) 

If a taxpayer is eligible for this method, they base their provisional tax payments on current year tax-adjusted accounting income. AIM-capable accounting software needs to be used. Taxpayers registered for monthly GST returns make twelve provisional tax payments per year. Those who are not GST-registered, or who are registered for two or six-monthly GST returns, will make six payments per year. A taxpayer can switch to the AIM method part way during a tax year if certain conditions are met.


Interest payable on underpayment or overpayment of provisional tax

Special rules apply if a taxpayer uses the GST ratio method or the accounting income method.

For all other taxpayers, one of the following calculation start dates will apply if any of these statements is true:

  • the year’s residual income tax is at least $60,000, or
  • the year’s provisional tax was estimated, or
  • there has been a “provisional tax interest avoidance arrangement”

From the last instalment date, if all of the following statements are true:

  • all the instalments were calculated using the standard method, and
  • all instalments (except for the last one) were paid in full and on time, and
  • all “provisional tax associates” also calculated all their instalments using the standard method OR used the GST ratio method, and
  • there has been no “provisional tax interest avoidance arrangement”

From an earlier instalment date in all other cases

Residential Land "Bright-Line Test"

NZ does not generally tax a capital gain made on the sale of private residential land (i.e. not otherwise subject to tax). However, a special “bright-line” test was added to the income tax legislation with effect from 1 October 2015.

Residential land sold within 2 years of acquisition can be taxed if the acquisition date was between 1 October 2015 and 28 March 2018.

Effective from 29 March 2018, the bright-line test period was extended to 5 years. Residential land sold within 5 years of acquisition can be taxed if the acquisition date was between 29 March 2018 and 26 March 2021.

Effective from 27 March 2021, the bright-line test period has been extended to 10 years. Residential land sold within 10 years of acquisition can be taxed if the acquisition date was on or after 27 March 2021. However, some acquisitions might still be subject to the 5-year rule.

Key points about this regime :

  • There are special definitions and exceptions
  • There is a "main home exclusion" (special rules apply)
  • The test does not apply to property acquired through an inheritance
  • There is a "rollover relief" for some ownership change scenarios, including when property is transferred as part of a relationship property agreement
  • A loss will be "ring-fenced"
  • Special anti-avoidance rules prevent companies and trusts being used to avoid the test

Residential Property "Ring-Fencing" Rules

Special tax rules can mean that losses from residential rental properties are “quarantined” (i.e. suspended) and carried forward until there is enough “residential property income” to claim them against. As a general rule, this means that such losses can no longer be claimed against other types of income (e.g. salary and wages).

These rules applied from the beginning of the 2019/20 income year. Therefore, the start date was 1 April 2019 for standard balance date taxpayers, but was earlier for early balance date taxpayers.

Key points about this regime :

  • There are special definitions and exceptions (including a "main home exclusion")
  • From 1 October 2021, deductions for interest expenditure could be phased out or denied altogether (see also the “Residential Property Interest Expenditure” section)
  • An owner can apply the rules on a portfolio basis or a property-by-property basis
  • Special rules apply if the owner is a look-through entity – i.e. a partnership or a look-through company (LTC)
  • Special rules apply if the owner is a company that is not an LTC
  • Special anti-avoidance rules prevent trusts, companies, LTCs or partnerships being used to avoid the ring-fencing rules

Residential Property Interest Expenditure

NZ does not generally tax a capital gain made on the sale of residential properties (i.e. not otherwise subject to tax). Until recently, the tax system allowed landlords to deduct interest expenditure, even if gains made on sale of the property were not taxed. New interest limitation rules have now limited the deductibility of interest expenditure incurred in relation to properties located in NZ.

  • Properties acquired before 27 March 2021 : if a loan is in a foreign currency, no interest deductions are allowed from 1 October 2021 onwards; for other loans, deductions for interest are being phased out, starting with deductions limited to 75% from 1 October 2021, and ending with no deductions allowed from 1 April 2025.
  • Properties acquired on or after 27 March 2021 (subject to certain exceptions) : no deductions for interest incurred from 1 October 2021 onwards.

Key points about this regime :

  • There are special definitions, exceptions, and exemptions (e.g. for new houses)
  • This regime does not apply to properties located in other countries
  • This regime can apply to all types of taxpayers, including some companies
  • Special "tracing" rules can apply - e.g. when borrowed funds are applied for purposes other than just the residential property, or when a variable balance loan such as an overdraft or a revolving credit facility is used
  • This regime can also apply to properties subject to the “mixed-use asset” rules
  • “Rollover relief” is provided for certain transfers or disposals to ensure that the phase-out rules continue to apply up to 31 March 2025
  • Previously denied deductions can become deductible if the sale of the property is taxable
  • Special anti-avoidance rules prevent companies and trusts being used to avoid this regime

Tax Penalties


A tax shortfall can incur the following penalties:

Lack of Reasonable Care

20% penalty

Unacceptable Tax Position*

20% penalty

Gross Carelessness

40% penalty

Abusive Tax Position

100% penalty


150% penalty


Penalties may be increased for:


25% penalty increase


Penalties may be reduced if shortfall is:

Disclosed before audit

100% penalty reduction for lack of 
reasonable care or taking an unacceptable
 tax position

Disclosed before audit

75% penalty reduction in all other cases

Disclosed before audit

40% penalty reduction

Temporary shortfall

75% penalty reduction

*Shortfall penalty for taking an unacceptable tax position only applies to income tax (not GST or withholding tax).


Penalties may be further reduced if the taxpayer satisfies the criteria for:

‘Previous good behaviour’

50% further penalty reduction


Late filing penalties

Income Tax Returns:
Net income (before losses) Penalty
Under $100,000 $50
$100,000 – $1,000,000 $250
Over $1,000,000 $500


GST Returns:
Payment Basis $50
Hybrid $250
Invoice Basis $250


ICA Returns $250
Reconciliation statements $250
Employer schedules $250
Investment income reporting non-compliance $250


Late payment penalties:

Initial late payment penalty 1% (the day after due date)
Then, after a week 4% (seven days after due date)
Then, after each month 1% incremental increase (Note: no incremental penalties for some tax types for periods after 31 March 2017)


Non-payment penalties (employer deductions):
Non-payment penalty (in addition to late payment penalty) 10%
A further 10% will be added each month an amount remains outstanding up to a maximum of 150%.


Tax Pooling


Taxpayers are able to use a tax pooling system to manage their provisional tax payments. Tax payments can be purchased or sold at pre-determined dates through an intermediary. Using a tax intermediary can give the seller a better interest rate return. For a purchaser, it can mean a reduced interest cost and, in certain circumstances, reduced penalties.

Tax pooling can also be used to purchase other types of tax in certain circumstances.

Use of Money Interest (UOMI)


In some circumstances, the IRD can charge or credit interest on underpayments or overpayments of most types of tax.

UOMI rates:
Payable to the IRD on underpayments 9.21% from 17 January 2023
Payable by the IRD on overpayments 2.31% from 17 January 2023

(See also the Tax Pooling section and the Provisional Tax section)