What do I owe IRD, and when?

Why your tax dates matter for cash flow

Most New Zealand businesses don't run out of money because they're unprofitable. They run short because tax lands in lumps on fixed dates while customers pay whenever they pay. GST collected over two months goes out in one payment on the 28th. Provisional tax arrives three times a year for most, and twice for six-monthly GST filers. Employer deductions leave by the 20th. Put them all on one list and the tight months jump out — usually January and May.

The 15 January date is the classic trap. GST for the period ending 30 November and the second standard provisional tax instalment both fall due as many businesses are reopening after the Christmas break. Large employers' deductions for late-December pays are due that day too. 7 May is the other: GST for the March period and the final provisional instalment arrive together. Our Christmas shutdown cash plan covers January in detail.

How to use your list

• Put every date in your diary with a reminder a week before.
• Copy them into a cash flow forecast on the months they actually fall — see our twelve-month forecast guide.
• Set up a separate tax account and move money into it weekly, so each date is already covered.
• If you can't pay on time, file anyway and talk to IRD before the date. Late payment penalties start the next day — 1% the day after and a further 4% on the seventh day.

When a tax bill needs funding

Borrowing to pay a tax bill can be sensible when the gap is temporary and the business is sound — a big one-off GST period, the second-year provisional tax catch-up, or a customer who's paying late. It's less sensible when every period needs help. Read should I borrow to pay my GST bill? and how provisional tax affects a loan application for the full picture. If you'd like to talk it through, ask a real person — there's no credit check to ask, and your details aren't passed around a pile of lenders. Please give accurate figures for the bill and the due date so we can aim for something that lands in time.

Tax date questions

When is GST due in New Zealand?

Inland Revenue says your GST return and payment are due by the 28th of the month after your taxable period ends. The period ending 31 March is due by 7 May, and the period ending 30 November is due by 15 January.

When are provisional tax instalments due?

For a 31 March balance date, the standard and estimation options have three instalments: 28 August, 15 January and 7 May. Six-monthly GST filers pay two: 28 October and 7 May. The ratio option has six: 28 June, 28 August, 28 October, 15 January, 28 February and 7 May.

When are PAYE and other employer deductions due?

If your gross annual PAYE and ESCT is under $500,000, by the 20th of the following month. At $500,000 or more you pay twice monthly: the 20th for pays from the 1st to 15th, and the 5th of the next month for pays from the 16th to month-end, with 16–31 December due on 15 January.

What if a due date falls on a weekend or public holiday?

IRD's tax calendar says you can file or pay on the next business day without incurring penalties. This tool moves weekend dates to the Monday; check public holidays such as Waitangi Day, Matariki and Labour Day yourself.

When is end-of-year income tax due?

For a 31 March balance date, generally 7 February of the following year, or 7 April if you have a tax agent with an extension of time.

My balance date isn't 31 March. Does this work for me?

Not exactly — this tool assumes a 31 March balance date, which most businesses use. Check IRD's calendar or ask your accountant for your own dates.