Individual income tax return guide 2011 - Inland Revenue Department

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