Individual income tax return guide 2011 - Inland Revenue Department
Individual income tax return guide 2011 - Inland Revenue Department
Individual income tax return guide 2011 - Inland Revenue Department
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50<br />
IR 3 INDIVIDUAL RETURN GUIDE<br />
Question 35 Early payment discount<br />
An early payment discount is available for people who:<br />
<br />
are new in business<br />
<br />
haven’t begun to pay provisional <strong>tax</strong><br />
<br />
are standard balance date <strong>tax</strong>payers, and have made a payment or<br />
payments on or before 31 March <strong>2011</strong> as <strong>income</strong> <strong>tax</strong> for the period 1<br />
April 2010 to 31 March <strong>2011</strong>.<br />
The discount is calculated at the rate of 6.7% of either:<br />
<br />
the amount paid during the year, or<br />
<br />
105% of your end-of-year residual <strong>income</strong> <strong>tax</strong> liability,<br />
whichever is the lesser, and is credited against your end-of-year bill.<br />
To see if you qualify, work through the flowchart on these pages. If you have<br />
any questions about your entitlement to the discount, please call us.<br />
Do you qualify for an early payment discount?<br />
Are you self-employed or in<br />
a partnership<br />
and<br />
you don’t use a company or<br />
trust to run your business<br />
and<br />
most of your <strong>income</strong> is from<br />
your business—not interest,<br />
dividends, rents or benefits?<br />
No<br />
Yes<br />
No<br />
Have you made a voluntary payment<br />
of <strong>income</strong> <strong>tax</strong> for the <strong>2011</strong> year on or<br />
before 31 March <strong>2011</strong>?<br />
Yes<br />
You don’t qualify<br />
Yes<br />
Were you liable for provisional <strong>tax</strong><br />
during 1 April 2005 to 31 March <strong>2011</strong>?<br />
No<br />
Have you ever paid provisional <strong>tax</strong>?<br />
Yes<br />
No<br />
Have you ever claimed the early<br />
payment discount?<br />
Yes<br />
No<br />
You qualify for an early payment<br />
discount. To apply, tick the box at<br />
Question 35 on your<br />
<strong>tax</strong> <strong>return</strong>.