Individual income tax return guide 2011 - Inland Revenue Department

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IR 3 INDIVIDUAL RETURN GUIDE
Payment options
You have three options for paying provisional tax—the standard option
“S”, the estimation option “E” or the ratio option “R”.
Standard option
Under this option, your 2012 provisional tax is your 2011 RIT (if it is more
than $2,500) less 5%.
Note
If you think your income for 2012 will be more than your 2011
income, you can make voluntary payments over and above the
amount you have to pay under the standard option.
Use this worksheet to calculate your 2012 provisional tax
using the standard option “S”
Copy your RIT from Box 34A of your
return to Box 1.
Multiply Box 1 by 0.05 (5%).
Print your answer in Box 2.
Subtract Box 2 from Box 1.
Print your answer in Box 3.
1
2
3 00
Box 3 is your 2012 provisional tax.
Copy it to Box 37B of your return and print “S” in Box 37A.
Divide the amount in Box 3 by 3 to get the amount you must pay for each
instalment. Record this on page 61.
If your filing your return after 28 August, your instalment amounts may
be different.
Estimation option
Anyone can estimate provisional tax. If you expect your 2012 RIT to be
lower than your 2011 RIT, estimating will keep you from paying more
than you have to.
If you choose to estimate, your estimate must be fair and reasonable at
the time you make it and at each instalment date.
You can be charged a penalty and/or interest if you don’t take reasonable
care when you estimate your provisional tax.