Tax pooling gives you a better, easier way to pay tax. Our tax pooling solutions can help solve cash flow issues by keeping money in the business for longer. Tax pooling can also help to reduce late payment penalties and interest costs. As a tax pooling provider, we can offer tailor-made tax pooling services to suit your business needs.
How does tax pooling work?
Tax pooling allows businesses to deposit money to a tax pooling provider on provisional tax dates, rather than paying directly to the Inland Revenue Department (IRD) on the day. These payments are then deposited by the provider into an IRD account, where they are held until the provider requests a transfer to the correct tax account. IRD treats these transfers to business accounts as tax payments from the date they are paid into the tax pool.
Tax pooling services are safe and legal in New Zealand. The tax pooling framework was established by the IRD in 2001 to help taxpayers meet their provisional tax obligations.
What are the benefits of tax pooling?
Tax pooling gives you a more flexible way to make provisional tax payments. You can pay your tax funds to registered tax pooling intermediaries when it best suits your business cash flow.
Tax pooling can save you time and money and reduce the stress of rushing to meet IRD deadlines. Having the tax provider file your tax returns on your behalf means they will always be paid on time, eliminating late penalties and interest costs.
Get in touch for seamless tax pooling solutions
At Premium Accounting Solution, we can provide a simple, hassle-free tax pooling service for your business. If you want to find out more about tax finance and our advisory services, give us a call or book an appointment. We are happy to guide you through all the options available to better manage your tax obligations.
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