Terminal tax is a final tax payable when provisional tax (or PAYE) paid is insufficient to cover your full EOY tax payment due.
2020 terminal tax payments are due on the 7th February 2021 if:
- Your balance date falls between 31st March and 30th September, and
- You do not have a tax agent acting on your behalf, or
- You were late filing last year and lost your extension of time to file/pay.
Having an accredited tax agent (such as Q2 Ltd) and extension of time to pay pushes the terminal tax date to the 7th April 2021.
Reach out to Q2 if you require any assistance with your tax situation. If you have cashflow difficulties Q2 may be able to assist with a tax purchase arrangement which would potentially eliminate IRD penalties, and reduce interest charges.
The payment due on the 7th of February depends on your balance date and if you have an arrangement for an extension of time to file/pay.
Balance date means the end of the financial year date for your business (for most tax payers this is 31 March).
If unsure of what you should do next, contact Q2 Ltd on 09 222 4448 or info@Q2.net.nz.