Following up on our previous tax blog, the government has recently announced that the provisional tax threshold for having to pay provisional tax has been increased from $2,500 to $5,000 from the 2020/21 tax year to help in relieving business cash flow concerns.
Following up on our previous tax blog, the government has recently announced that the provisional tax threshold for having to pay provisional tax has been increased from $2,500 to $5,000 from the 2020/21 tax year to help in relieving business cash flow concerns.
Taxpayers with tax payable between $2,500 and $5,000 who would have otherwise been liable to pay provisional tax in the 2020/21 year will now be able to pay their tax in full on their terminal tax date instead of having to pay in instalments throughout the year. This will help small businesses improve their cash flow during the year by allowing them to retain cash for longer as well as reducing the compliance costs.