What happens if I over pay or under pay my provisional tax?


If you overpay you provisional tax, any over-payments will get refunded once your income tax return is filed and processed with Inland Revenue (unless you have other debts with Inland Revenue or you would like Inland Revenue to use it to pay another tax liability).

For the AIM method, your statement of activity will let us know if you've overpaid your provisional tax for the year. A refund can be sent to you straightaway - you won't need to file an Annual imputation return (IR4J) or wait until the end of the year to get the refund.

Note: a person only gets paid interest at the rate of 1.02% for any over paid tax.


If the provisional tax payments you've made don't cover your tax owing, the balance is called "terminal tax" and you must pay it by the terminal tax due date.

If you're a RightWay customer and have any questions please call us on 0800 555 024 or email info@rightway.co.nz