Differences between a Tax Year and a Calendar Year

Differences Between Tax Year And Calendar Year

Differences Between Tax Year And Calendar Year

As an individual taxpayer, the one you should be concerned about is the company and personal financial year which begins on 1st April and ends on 31st March (the following year). Why? Because it is ultimately relevant to your tax returns. You should begin applying for your tax refunds on this date (1st April) as this is the start of a new financial year.

The other financial year in New Zealand is the Government’s financial reporting year which begins on 1st July and ends on 30th June (the following year). This does not affect individual taxpayers. You can still start applying for it now!

Types of taxable income:
  ➣     salary and wages.
  ➣     business and self-employed income.
  ➣     income from investments (interest, dividends, certain property transactions, etc.).
  ➣     rental income.
  ➣     overseas income (including income from an overseas pension).

Tax Due Dates for 2017–2018

For end-of-year income tax:
  ➣     7th April 2017 end-of-year income tax due for clients of tax agents (with a valid extension of time).
  ➣     7th February 2018 end-of-year income tax due for people and organisations who don’t have a tax agent.

For income tax returns:
  ➣     7th July 2017 income tax return due for people and organisations who don’t have a tax agent or extension of time.
  ➣     31st March 2018 income tax return due for clients of tax agents (with a valid extension of time).

Late Payment Penalties

An initial late payment penalty is applied in two stages
  ➣     1% is charged on the day after the due date.
  ➣     If the amount remains unpaid after another 6 days, a further 4% penalty will be charged.

A warning notice will be issued by the IRD for first offences in certain cases. Although, this warning notice does not apply to late payments of provisional tax.

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