NZ Tax: Terminal tax labelled as Residual tax to pay
On the IR3 2024 tax return it is currently labelling the tax liability after provisional tax paid as 2024 residual tax to pay. It should say "Tax to pay" or "Terminal Tax to pay". It is incorrect and confusing to have the tax before and also after provisional tax to both be labelled as residual tax. In communications when we are advising on provisional tax obligations we reference the obligation being based on 105% or 110% of residual income tax and now that is not clear for the client which figure we are using. In addition under the 2025 provisional tax section of the return it refers to the amount being 2024 residual income tax plus 5% so how is the client supposed to easily see which residual income tax amount is being used.
Sharnee Heyes
shared this idea
Hey team👋 thanks for all your support on this idea.
We're pleased to announce that some changes made in April 2025 have implemented the functionality of this idea!
You’ll now see that the wording on 2025 payment summaries show “Terminal tax to pay”, rather than “residual tax”.
We really appreciate everyone’s support for this idea, as this is what helps drive these changes.🙂
