The Accounting Income Method (AIM) is a new provisional tax option available from April 2018.
The details on how AIM will work are now complete.
Here is a quick summary of the key points of AIM.
How AIM will work:
You may be able to use AIM if your turnover is under $5 million per year and you use approved accounting software. Some types of businesses can't use AIM.
AIM software will work out your provisional tax based on your income and adjustments. You will pay your provisional tax every one or two months, depending on how often you pay GST. If you are not GST registered you will pay every two months.
The benefits of using AIM:
There are many benefits of using AIM as your provisional tax option
- Your AIM software will work out your provisional tax for you
- It'll be easier to keep track of your businesses cashflow
- You'll only pay provisional tax if you earn profit
- Any provisional tax over payments can be refunded during the year
Click Here for more information and to see the IRD website.